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UNITED STATES OF AMERICA. 



THE 



EXPERT'S ASSISTANT. 



A COMPENDIUM 



GIVING RULES FOR THE CERTAIN DETECTION OF ALL KINDS OF ERRORS IN 

POSTING, ETC. — HOW TO DETERMINE WHAT EACH SIDE OF THE TRIAL 

BALANCE SHOULD FOOT INDEPENDENT OF THE LEDGER, BOTH BY 

TOTALS AND DIFFERENCES. — THE MOST COMPLETE AND 

EXHAUSTIVE TREATISE ON TRANSPOSITIONS AND 

MISPLACEMENTS EVER PUBLISHED, SHOWING 

THE EXACT AMOUNT OF THE ERROR. 



THE LATEST AND BEST RULES FOR AVERAGING ACCOUNTS, INTEREST, 
FOREIGN EXCHANGE, RAPID FOOTING AND EXTENSIONS, 
— HOW STOCK COMPANIES ARE FORMED, AND HOW 
TO OPEN AND KEEP THEIR BOOKS —BAL- 
ANCE SHEETS, BUSINESS 
LAW, ETC. 




BElsr S. KNOWLTOK 



COPYEIGHT, 1890. 




1890: 

Pioneer Press Company, 

St. Paul, Minn. 



.K7 



CONTENTS. 



Introductory, ....... 

Journalizing, . . . . . . . . 

Books of Account, . ..... 

Expert Book-keeping,. ...... 

Trial Balances, . ...... 

Method of determining what the footing of the Trial Balance should 
be when taken by Totals^ ..... 

Method of determining what the footing of each side of the Trial 

Balance should be when taken by Differences, independent of 

the Ledger and each other, 

Mercantile Books — 

Day Book, January, .... 

Cash Book, January, .... 

Journal, January, ..... 

Ledger, January, .... 

Trial Balance by Totals and Differences, . 

Proof of Trial Balance by Totals, 

Proof of Trial Balance by Differences, 

Explanation of proof of Trial Balance by Differences — balance of 
merchandise on the debit side, 
Mercantile Books — [Co7itinued) — 

Day Book, February, . ". . . 

Cash Book, February, 

Journal, February, ..... 

Ledger, February, . ... 

Trial Balance by Totals and Differences, . 

Proof of Trial Balance by Totals, 

Proofof Trial Balance by Differences, 

Explanation of proof of Trial Balance by Differences — balance of 
merchandise changed to credit side, 
Mercantile Books — (Continued) — 

Day Book, March, ..... 

Cash Book, March, .... 

Journal, March, ..... 

Ledger, March, .... 



1.2 
2-4 

4-6 

6 

6-1 1 



8.9 

13-17 

18, 19 

20, 2 1 

22-28 

29 

29 

30 

31 

33-35 
36,37 
38,39 
40-44 

45 
45 
46 

47 

48,51 
52,53 
54,55 
56-60 



IV CONTENTS. 

Trial Balance by Totals and Differences, . . . 6i 

Proof of Trial Balance by Totals, ..... 6i 

Proof of Trial Balance by Differences, .... 62 

Explanation of proof of Trial Balance by Differences — balance of 
merchandise on the credit side, . . . . -63, 64 

Balance Sheets — 
Balance sheet of business (three months) shown in the illustrations. 

giving form for making same, .... 65 

Inversions, or Transpositions (simple, or single), ... 66 

Compound Transpositions, ..... 66 

Rule for determining, where both increase or diminish the original 

sum, ........ 67 

Rule for determining, where one increases and the other diminishes 

the original sum, ...... 67 

Rule for determining, where two transpositions are made partly in 

same column and both increase or diminish the original sum, 67 

Rule for determining the same, where one increases and the other 

diminishes the original, ..... 68 

Rule for determining the number, and all possible transpositions 

that can be made with any given difference, . . 68 

Table showing all possible transpositions, .... 69 

Misplacements — 

Rule for finding the exact sum for misplacements of one place, . 70 

Rule for finding the exact sum for misplacements of two places, . 70 

Rule for two or more misplacements moved the same number of 

places in the same direction, ..... 71 

Rule for misplacements, where one has been moved to the right and 

one to the left, ...... 71 

Rule for compound misplacements, where one amount has been 

moved two places, and the other one, in opposite directions, 72 

Rule for determining the exact amount in which error is made in 

footing, where tens have been added as hundreds, or vice versa 73 

Examples of transpositions and explanations of same, . . 74-77 

Examples of misplacements and explanations of same, , . 78-82 

Second method of finding the exact sum in misplacements of one 

place, . . . . . . . . 81 

Examples illustrating same, . . . . . 82, 83 

Dropped Figures — 

Rule for finding the exact sum from which a figure has been dropped, 

including figure dropped, ..... 84 

Examples illustrating same, . . . . . . 84-87 

Rule for finding the exact sum from which two figures adjoining have 

been dropped, including the figures dropped, . . 87 

Examples illustrating same, ...... 87 

Rule for finding the exact sum where there is an interval between the 

figures dropped, ...... 87 

Examples illustrating same, ...... 87-90 



CONTENTS. 



one month to the 



Stock Companies — 

How formed, articles of incorporation, etc., 
Stock Books, 

Stock Subscription Book (Example i), 

Stock Journal (Example i), 

Stock Cash Book (Example i), 

Stock Subscription Book (Example 2), 

Stock Journal (Example 2), 

Stock Cash Book (Example 2), 

Stock Subscription Book (Example 3), 

Stock Journal (Example 3), 

Stock Cash Book (Example 3), 
Transferring Stock, . 
Dividends, . .... 

Time Tables — 

Table showing number of days from any day of 
same day of any other, 

Table showing the numerical order of the days of the year, . 

Explanation of table, ...... 

Centennial Calendar, for ascertaining any day of ihe week for any 
given time within the present century. 

Rule for ascertaining on what day of the week any given date falls 
in any year, ....... 

Equation of Payments — 

Rule for simple equations, ..... 

Rule for partial payments, . . 

Rule where bills are bought on different dates and terms of payment 
Averaging Accounts — 

Rule for averaging accounts, ..... 

Examples, ........ 

Foreign Exchange — 

Arbitration of exchange, ...... 

Rule for arbitration of exchange, . . . . 

Examples, . . . . . 

Rules for Calculating Interest — 

To find the interest on any sum at any rate for any given time, 

Short rule for interest, ..... 

Rapid Addition, ...... 

Short Methods of Extension, .... 

Rule, where the figures of the multiplier are all the same, . 

To square any number of figures ending in 5, . 

To multiply any number of figures ending in 5, 

To extend any sum by any other sum in a single line, 

Examples, ....... 

Business Law, ...... 



90,91 
91,92 
93 
93 
94 
95 
95 
96 
96 
97 
97 
97 
98. 



98 

99 

100 



lOl 



103 
103 
104 

105 
106, 107 

108 
108 
108 

109 
110 
1 10 
III 

112 
113 
113 
114 

IT5 

116, 117 



THE EXPERT'S ASSISTANT. 



As the title of this work indicates, it is not intended as a treatise 
on book-keeping, but as an assistant to those already actively en- 
gaged in the profession, and for advanced students who may desire 
to avail themselves of its help. Therefore, but little instruction will 
be attempted as to the ordinary routine work, and only such ex- 
amples and forms given as may serve to illustrate the principles, 
etc., involved. 

The idea of the author has been to present, in as concise form as 
possible, tables, rules and forms that will lighten and expedite the 
work of the accountant, thereby enabling him not only to do his 
work with more ease to himself, but, what is of far greater impor- 
tance, give better satisfaction to his employer. 

The tables and forms presented it is not claimed are all new or 
original, although some of them have never before been published, 
but are such as are required almost daily, and if published are 
scattered through many works, not to be easily obtained when most 
needed. Their value and use will be appreciated on examination. 

The rules given are the result of many years' practical experience 
in all classes of accounts, and are believed to be the best and short- 
est for the purposes indicated. 

The rules on Inversions and Misplacements are believed to be 
the most complete and exhaustive ever published, and are to a great 
extent entirely original, especially as regards misplacements, which 
shows what has never before been attempted, viz., the exact amount 
iufiill that has been tnisplaced; not an approximation or a portion, 
but every figure composing the sum, thus enabling the accountant to 
locate and find the error at once, as it gives him the only possible 
amount that could make it. 



2 THE EXPERTS ASSISTANT. 

The table of possible inversions or transpositions shows at a 
glance how many and what inversions may be made with any givea 
difference. Although it is probably used by experts, they have ta 
stop and figure it out every time they have occasion to use one. It 
is now published for reference for the first time. * 

The rules for determining not only the dropped figure in any suniy. 
but all the figures of that sum to the left of the one dropped, are en- 
tirely new and original, and will be found of great value in detecting 
that class of errors. 

The method of determining what the footing of the trial balance 
should be when taken by the Ledger footings, although not generally 
known, has been in use by experts for years. The method where 
the trial balance is taken by differences is claimed to be new and 
original. 

By these methods one can determine exactly what the footing of 
his trial balance should be, independent of the Ledger, and thus as- 
certain the errors, if any, on each side, and knowing just what to 
look for, will, in connection with the other methods given, usually 
enable the accountant to locate and detect the errors at once, thus 
obviating the necessity of the tedious process of checking each item 
on both sides until found, as is generally practiced, thereby effecting 
a great saving in time and annoyance. 

JOURNALIZING. 

In the Journal, in its simplest form, only the Ledger headings, or 
names of the various accounts appear, and in order that the various 
amounts making up those accounts should appear in their proper 
places, it is necessary that they should be properly journalized, giv- 
ing each account its proper debit and credit. 

The terms debit and credit are generally understood, but it often 
happens that in complex entries the book-keeper is puzzled as to the 
proper way in which to make the Journal entry from the statement 
on his blotter so as to get the proper debits and credits. 

The following simple rule will enable him to do so without any 
trouble, viz.: 

Who^ or whatever costs is debtor. Who, or whatever produces is 
creditor. 



THE EXPERTS ASSISTANT. 3 

By applying this rule to each item, any entry, no matter how com- 
plex, maybe readily arranged under its proper Ledger heading, and 
in its proper place. As an instance, suppose you found on your 
blotter the following history, or statement of a transaction: 

March 3, 1890. 



Bought of John Smith, 
Lot 5. Blk. II, Brown's Addition to St, 

Paul, for 

Also received from him our note, dated 

January ist, @ 60 days for 

Interest on same @ y% 

Also account against S. Jones 

In payment of which we have sold him 
250 bbls. Flour @ 7.00 

And given him R. Taylor's note @, 4 mos. 
from January ist for 

Interest accrued on same 2 mos. @ 8%.. 

And our note @ i year @ 6% for 

Cash for bal. as per Cash Book 653,45 



3,500 

1,000 
12 
50 



1,750 

650 

8 

1,500 



00 I 

67 I 
00 



4,562 



3,908 



67 



In making the Journal entries of the foregoing, the first step is to 
determine what is debit and what is credit by the rule. On analyzing 
it, we find that: 

Real Estate is debit, as it cost 3,500 00 

Bills Payable is debit, as it cost 1,000 00 

Interest is debit, as it cost 12 12 

S.Jones is debit, as he cost 50 00 

John Smith is credit, as he produced 4,562 12 

Merchandise is credit, as it produced i,75o 00 

Bills Receivable is credit, as it produced 650 00 

Interest is credit, as it produced 8 67 

Bills Payable is credit, as it produced 1,500 00 

John Smith is debit, as he cost 3,908 67 



As the Cash Book shows a debit for the balance to John Smith, 
it does not appear on the Journal, 

The above may be simplified or condensed so as to read on the 
Journal as follows: 



4 



THE EXPERTS ASSISTANT. 
March 3, 1890. 



Sundries Dr. to Sundries, 

Real Estate 

Bills Payable 

Interest 

S. Jones 

To Merchandise 

To Bills Receivable. 

To Interest 

To Bills Payable 

To John Smith 



3,500 


00 




1,000 


00 




12 


12 




50 


00 


1,750 
650 

8 

1,500 

653 



BOOKS OF ACCOUNT. 

The books in general use consist of^ 

The Day Book, or Blotter, in which is recorded all transactions as 
they occur (except cash), and should give, in as brief term? as pos- 
sible, a full history of each transaction. The entries may be made 
by anyone. 

The Cash Book, in which is entered all cash transactions, receipts 
and disbursements. Entries, as a rule, in the Cash Book should 
only be made by the person responsible for the cash. A very good 
method is to keep a petty Cash Book, on which all cash transac- 
tions are entered as they occur, and the same balanced daily, and a 
general Cash Book, kept by the book-keeper only, to which all 
entries in the petty Cash Book, in a consolidated form, should be 
transferred (such as Merchandise, Sales, Expense, etc.), and if checks 
on the bank are treated as cash, the bank should be credited, and 
the individual and other accounts debited, as they would not appear 
on the petty Cash Book. The general Cash Book need not be bal- 
anced more than once a month and the total receipts and disburse- 
ments posted but once a month. By using a three-column Cash Book 
the Merchandise, Cash Sales and Expense account need not be 
posted but once a month, as will be shown in the example given. 

The Journal, which is kept by the book-keeper, shows each ac- 
count arranged under its proper Ledger heading, ready for posting, 
and requires no further explanation than that already given, as the 
history of each transaction appears on the Day Book, or Blotter, and 
it is only a useless repetition to make them on the Journal, as the 
original entry is the only one good in law. 



THE EXPERTS ASSISTANT. 5 

The Ledger contains all accounts pertaining to the business, under 
their proper headings, as transferred from the Cash Book and 
Journal. 

There are a great many other books in use to suit the convenience 
of the business, or ideas of the proprietors, such as Merchandise 
Sales Books, on which appear all sales made for cash or credit (in 
some cases credit sales only), and postings made from it direct, with- 
out appearing on the Journal. In the first instance, cash sales must 
be transferred to the Cash Book daily, and credit sales extended into 
a separate column from which the Merchandise credit can be posted 
daily or monthly, as preferred. Invoice Books are also used, in 
which ail credit purchases of merchandise are entered. These can 
also be posted direct, without going on the Journal. But they are 
practically a part of the Day Book, or Blotter, and only serve to 
scatter the record of the business through several books, instead of 
all being on one, and forming a continuous record of the business 
from day to day. In many large houses these and other auxiliary 
books are a necessity, as it would be almost impossible to make a 
record of all their transactions on a single book. But, as a general 
rule, the fewer the number of books, and the simpler they are, the 
better, as the more complicated they are the greater the liability to 
error, as every transfer from one book to another increases it and 
makes it more difficult to discover. 

A trial balance should be taken off every month, not only for the 
purpose of proving the correctness of the books, or ascertaining and 
correcting any errors that may have been made, but for the informa- 
tion and guidance of the proprietors, who, by an intelligent study 
of the same, can see just how their business is going from month to 
month, and regulate it accordingly; watch not only individual 
credits, to see that they are not improperly extended or increased, but 
their total line of credit sales, to see that they are not increased be- 
yond their ability to carry with safety. Many houses, apparently 
doing a large and prosperous business, have been swamped by 
neglecting to study their accounts; found payments falling due that 
must be met, and nothing to meet them with except a large line of 
unavailable accounts on their books, that might have been avoided 
if they had studied their books as the mariner does his charts, neg- 
lect in either case being almost surely fatal. 



O THE EXPERTS ASSISTANT. 

At least once a year a balance sheet should be made, inventories 
taken, dead or worthless accounts closed out, and a new start taken 
with clean sheets. Many persons object to closing doubtful accounts 
into Profit and Loss at the time of making the balance sheet, under 
the impression that it finally disposes of them, and that they have 
no further claim on them. This is a mistaken notion, and only 
makes the profits appear larger than they really are and increases 
the assets by worthless accounts ; and, in consequence, the balance 
sheet does not show the exact state of the business, as it should do. 
If, as is often the case, anything should be realized from such ac- 
counts, it is very easy to restore them by crediting Profit and Loss 
with the amount. 

EXPERT BOOK-KEEPING. 

Expert accountants (and all who follow the profession should be 
experts) should, in addition to mastering all the details of the busi- 
ness, familiarize themselves with the principles of commercial law 
and customs, as "commercial custom, in the absence of direct law 
upon the subject, is law;" the laws governing the formation and 
conduct of corporations in their states; the relations of principals 
and agents ; the collection of accounts, and those governing promis- 
sory notes ; be able to draw up any ordinary agreement in a proper 
and legal form without the assistance of a lawyer; in fact, should be 
conversant with all kinds of business forms and usages, and thus 
enhance the value of their services to their employer and raise the 
standard of their profession. 

In book-keeping, as in any other business or profession, ''Knowl- 
edge is powej^,'' and the more general information you have the 
higher you will rank. 

TRIAL BALANCES. 

The taking of a trial balance each month is necessary to prove 
the correctness of the Ledger, and to detect and correct the errors, 
if any. This involves a great deal of labor, especially when there 
are a large number of accounts on the Ledger, and when errors 
have been made. Under the old methods, the only means of detect- 
ing them was by the slow and tedious process of going over and 



THE EXPERTS ASSISTANT. 7 

checking each entry until the errors were found ; and as there may 
be, and usually are, errors on both the debit and credit sides, the 
difference affords no clue to the actual ones on either side. 

A method by which the footings of each side of the trial balance 
can be determined independent of the Ledger cannot but prove a 
great saving in time and labor, as it enables the accountant to de- 
termine the exact amount of errors on each side, and thus, knowing 
definitely just what to look for on either side, be enabled to locate 
them much more readily. This, in connection with the rules for 
finding errors of misplacements and transpositions, which in cases of 
misplacements give the full amount of the sum misplaced, and in 
transpositions showing all possible transpositions, render the discov- 
ery of errors a comparatively easy matter, and avoids, in most cases, 
the necessity of checking through the month's business. 

Trial balances are taken in two ways: first, by the total footings 
of each side of every open account on the Ledger; and, second, by 
differences — that is, the balance of each account. Each method 
has its advantages and advocates, which it is needless to discuss 
here, leaving each one to form and enjoy his own opinion. 

One very great advantage claimed for trial balances by totals 
over that by differences has been that while the footings of the trial 
balance could be determined by that method independent of the 
Ledger, ''it coidd not be done when taken by differences!' This is a 
mistake, as it can be done (as will be fully shown) as readily and cer- 
tainly when taken by differences as by totals, with this difference, that 
while the same figures are used for both sides when taken by totals 
to show the footing of the trial balance, when taken by differences 
the result is obtained by entirely different figures for each side, and 
independent of each other, thus being a check each on the other. 

TRIAL BALANCES BY TOTALS. 

When a trial balance is taken by totals the footings of the pre- 
vious trial balance will be increased by all amounts posted to the 
Ledger from all sources, i. e., Cash Book, Journal, etc., and de- 
creased by the amount of all accounts which have been closed dur- 
ing the month, and by the amount closed out, where balances have 
been brought down. 



THE EXPERTS ASSISTANT. 



TRIAL BALANCES BY DIFFERENCES. 



To ascertain what the footing of each side of the trial balance 
should be when taken by differences, independent of the Ledger: 

The balance of Merchandise account being on the debit side, the 
debit side will be increased by all purchases of merchandise, either 
for cash or credit, during the month ; by all cash payments on ac- 
counts showing a debit balance, such as Expense, Interest, Freight, 
etc.; by all credit or cash purchases of property other than mer- 
chandise, unless paid for in merchandise; by the increase in the cash 
balance (not the balance) during the month over the previous one; 
by the increase in the balance in bank during the month. 

If the balance of Merchandise accouitt being on the debit side the 
previous month, shoidd appear on the credit side for the current month, 
then the debit side would be increased by such balance in addition 
to the purchases. 

The balance of Merchandise account being on the credit side for 
the previous and current months, the debit side will be increased by 
the credit sales instead of purchases, not taking the cash sales or 
purchases into account. The debit balance will be decreased by all 
receipts on accounts and bills receivable, either in cash or merchan- 
dise, that show a debit balance, by credit sales of merchandise to 
persons having a credit balance, and by receipts (either in cash, ac- 
count or note) on shipments on joint account. It will also be de- 
creased by the decrease of the balance of cash on hand during the 
month, and by the decrease in the balance in bank during the month, 
and the cash sales of merchandise for the month if the balance of 
Merchandise is on the debit side. The difference between the in- 
crease and decrease, added to or subtracted from the total of the 
previous month's trial balance, will give the amount that the debit 
side of the trial balance should foot. 

The credit side, the balance of Merchandise being on the debit side,. 
will be increased by all investments in the business during the cur- 
rent month ; by all credit purchases of merchandise or other prop- 
erty, either on account, note or mortgage, during the month; by the 
net receipts during the month from interest, commission, profit and 
loss (if the balances of the accounts are on the credit side) ; and by 
the balance to the credit of shipments on joint account for the month. 



THE EXPERTS ASSISTANT. 9 

If the balance of Merchandise account being on the debit side the 
previous month, should appear on the credit side for the current month, 
the credit side would be increased by such balance in addition to 
the credit purchases. The cash sales and purchases are not taken 
into account when the balance is on the debit side. 

TJie balance of Merchandise account for the previous and current 
months being on the credit side, it will be increased by the credit and 
cash sales. 

The credit side will be decreased by all payments made, either in 
cash or merchandise, during the month on accounts showing a credit 
balance; by the net amount paid on Interest and similar accounts if 
they show a credit balance ; and if the balance of Merchandise ac- 
count be on the credit side for the previous month, by the amount 
of the cash purchases for the month. 

The difference added to or subtracted from the total of the pre- 
vious month's trial balance will give the footing of the credit side. 

In cases where one kind of property is exchanged for another 
(except merchandise), where there is a profit or loss on the property 
exchanged, the debit side will be increased by the net profit or de- 
creased by the loss. 

In cases of merchandise companies that are not closed out, the 
debit side will be increased by the total cost, taking no account of 
any sales except for cash. If there should be any, they would de- 
crease the debit side. In cases of shipments on joint account to 
others, where the property shipped has not entered into the Merchan- 
dise account, and the shipment has not been closed, the debit side 
will be increased by the amount charged against it, including the 
profit, or less the loss, if account sales have been rendered. 

The credit side will be increased by the profit on exchange of 
property, other than merchandise, and decreased by the loss. It will 
be increased by the cost of merchandise companies, less the cash, 
if any charged against them, and by the cost of shipments on joint 
account, where the shipment has not entered into the Merchandise 
account, and the shipment has not been closed. 

All sums drawn out of the business by the proprietors will de- 
crease the credit balance, the same as payments to parties having a 
credit balance. 



10 THE EXPERTS ASSISTANT. 

The following transactions are given in order to illustrate the 
methods fully, the Ledger accounts being transferred from one 
month to another, simply for convenience in reference and to avoid 
confusion in the trial balances : 

Where the trial balances are taken by totals, it will be found 
convenient to use a small blank book or paper, which can be placed 
in the back of the Ledger, and secured by a rubber band, in which 
to enter the amount of accounts as they are balanced, or the amount 
closed out when balances are brought down. 

Where the trial balance is taken by differences, a similar arrange- 
ment will be found convenient in which to enter the amounts re- 
ceived each day on debit accounts, and such other items as go to 
increase or decrease the debit side. The credit and cash purchases 
and sales of merchandise need not be entered, as they can be readily 
ascertained from the Journal and Cash Book, or taken from the 
Ledger at the close of the month. Payments and other items that 
go to increase or decrease the credit side should also be kept in a 
similar manner. In this way the book-keeper will find that it will 
take but a few minutes to determine what the correct footing of each 
side of his trial balance should be, and the amount of the errors, 
if any, on each side, and thus know exactly what to look for, saving 
much time and more annoyance, and besides having the satisfaction 
of knowing that his trial balance is absolutely correct, both sides 
having been proved independent of the other, and by entirely differ- 
ent figures. Under the old system, while the trial balance might 
show the books as being correct, an error in posting to one side 
might be offset by an error in footing on the other, and, having no 
other proof than the mere fact of having a balance, would never be 
discovered. 

It has not been thought necessary to make any errors in the trans- 
actions in order to show the manner of detecting them, as that is 
fully shown in the articles on "Transpositions," "Misplacements," 
and "Dropped Figures," while those of omission would appear from 
the differences indicated by the proof of the footings. 

The examples have been made very full and varied, in order to 
cover as many different kinds of accounts as possible, and show the 
application of the method to the various conditions. It is believed 



THE EXPERTS ASSISTANT. II 

that they will be readily understood in connection with the explana- 
tions appended. 

The foregoing method is based on the theory that everything that 
goes to increase the assets of the business, in the way of property 
and representative accounts, increases the debit side of the trial bal- 
ance, Expense and similar representative accounts being considered 
an asset until closed into Profit and Loss (personal accounts are not 
considered, as they are simply an exchange of one asset for another), 
and that all receipts on personal and other accounts that diminish 
the assets, real or apparent, decrease the debit side. 

In the same manner, the credit side represents the liabilities, and 
everything that goes to increase them adds to the credit side, and 
payments made on accounts, etc., that go to diminish them, decreases 
the credit side. 

In the case wfeere ihe balance of the Merchandise account is on 
the debit side, the assets and liabilities are each increased by the 
credit purchases : the assets, because we have that much more mer- 
chandise on hand ; the liabilities, because we have become indebted 
to that extent. The cash purchases increase the debit side, because 
Ave liave diminished one asset (as shown by the cash balance) to in- 
crease another. The cash sales decrease the debit side for a similar 
reason, the cash on hand or in bank being increased, while the bal- 
ance, or amount of merchandise, on hand has been diminished. 
Where the balance of Merchandise account appears on the credit 
side, it becomes an apparent liability, and the cash and credit sales 
increase that liabitity, and, in consequence, increase the credit side. 
The debit side is increased by the credit sales, as it represents an 
increase in the amount due on personal accounts, and therefore 
an asset. The cash purchases decrease the credit side when the 
balance of merchandise is on the credit side, because it diminishes 
the apparent liability. The decrease in assets is accounted for by 
the decrease in cash balance. 



12 THE EXPERTS ASSISTANT. 



MERCANTILE BOOKS: 

DAY BOOK, CASH BOOK, JOURNAL, LEDGER. 

TRIAL BALANCES. 

PROOFS BY TOTALS AND DIFFERENCES. 



THE EXPERTS ASSISTANT. 
January ist, 1890. 



13 



Bot. of B. K. Marshall, 

Store on East Third street for 

Fixtures, etc., contained in same. 



On which we have assumed mortgage for 

Interest due on same to date 

Gave him note @, i year with interest @ 
1% 



Bot. of Perry, Nichols & Co., @ 4 mos., 

10 casks O. P. Brandy, 550 gals (z') 2.50 

50 bbls. O. C. Whisky, 2,050 gals....®- 1.75 
Cartage 



Bot. of Eureka Packing Co., for note @ 60 
days, 
3,500 cases Canned Goods, asstd., @ 4.00 

January 3d. 

Bot. of C. A. Pillsbury & Co., @ 3odavs, 
5oobbls. XXX Flour ©6.15 

Bot. of Armour Packing Co., © 30 days, 

20,000 lbs. Bacon Sides @ ']%. 

100 bbls. Mess Pork @ 1250 

January 4th. 

Bot. of P. Lorillard & Co., for note @- 6 mos. 
Cigars and Tobacco, as per invoice 



Bot. of New York Refining Co., @ 3 mos. 
Sugar and Syrups, as per invoice 



January 5th. 

Sold A. H. Jones & Co., Denver, Colo., @ 
I 3 mos.. 

! 2 casks O. P. Brandy, 115 gals @ 3.20 

10 bbls. O. C. Whisky, 410 gals @ 2.15 

Cartage 

January 7th. 

Bot. of Jas. Kirk & Co., @ 6 mos., 
Soap, etc., as per invoice » 



Bot. of N. K. Fairbanks & Co., @ 30 days, 
10,000 lbs. Lard @, 9 

.Sold H. Wilson & Co., Fargo, Dak., @ 60 
days, 

25 bbls. XXX Flour @ 7.25 

1,000 lbs. Bacon Sides % ^Yz 

5 bbls. Mess Pork @ 1500 

I bbl. O. C. Whisky, 41 gals @ 2.50 

Cartage 



13,500 
1,500 



10,000 
150 



00 



4,850 00 



1,375 00 

3,587 50 

3 00 



14,000 



3,075 



1,450 
1,250 



2,750 
5,187 



352 
881 



650 
900 



181 
95 
75 

102 



50 



15,000 



15,000 



4,965 



50 



2,700 00 



1,234 00 



454 25 



H 



THE EXPERT S ASSISTANT. 



January 8th. 



Bot. of Oriental Tea Co., @/ 4 mos., 
Coffee, Tea and Spices, as per invoice.... 

Sold W. H.Johnson & Co., Brainerd, Minn., 

25 cases Canned Peaches (a)j 6.50 

25 cases Canned Apricots @/ 7.00 

25 cases Canned Plums @ 6.75 

25 cases Canned Salmon @ 7.00 

100 boxes Soap, 6,000 lbs @ 4 

50 lbs. Climax Plug @ 40 

2 m. Key West Cigars @ 50.00 

500 lbs. Bacon Sides... @ 10 

Cartage 

January 9th. 

Sold B. Simon & Co., for their note @ 60 
days, 

8 casks O. P. Brandy, 440 gals @ 3.10 

39 bbls. O. C. Whisky, 1,599 gals..@ 2.10 

5 m. Key West Cigars @r 48.00 

10 m. G. S. Cigars @ 30.00 

Sold Fisher & Kellogg, City, 

100 lbs. Rio Coffee @ 25 

100 lbs. Y. H. Tea @ 50 

January loth. 

Sold E. H. Taylor & Co., Stillwater, Minn., 

10 bbls. Sugar, 2,850 lbs @ 10 

2 bbls. Syrup, 90 gallons @ 55 

100 lbs. Rio Coffee @ 25 

100 lbs. Java Coffee @ 28 

100 lbs. Y. H. Tea @ 50 

100 lbs. G. P. Tea @ 55 

Cartage 

January nth. 

Bot. of McVeigh & Co., @ 4 mos., 
Mdse., as per invoice 

Sold H. P. Upham & Co., City, 

50 bbls. Mess Pork @/ 15.00 

10,000 lbs. Bacon Sides @ 9 

20 bbls. A Sugar, 5,560 lbs @ g)4 

1,000 cases Canned Goods, asstd..@ 6.00 
250 bbls. XXX Flour @ 7.25 

Cr. 

Received from them on above, 
50 Shares First Natl. Bank Stock, @ 125.00 



5,750 



162 


50 


175 


00 


168 


75 


175 


00 


240 


00 


20 


00 


100 


00 


50 


00 




50 



1,364 

3,357 
240 
300 



285 
49 
25 
28 

50 

55 



3,785 



750 

900 

528 

6,000 

T,8l2 



6,250 



991 



75 



5,261 



90 



75 



493 



9.990 



70 



THE EXPERTS ASSISTANT. 
January 12th. 



15 



Received of A. Fink & Co., Chicago (Mdse. 
Co. A), to be sold on joint acct, each 
one-half, 

100 bbls. Vinegar @/ 7.00 70000 

50 bbls. Pickles @ 15.00 750.00 



1,450.00 



Our one-half of above invoice. 
January 14th. 



Bot. of Jas. Wilson & Co., 
25 bbls. Tallow, 6,250 lbs @ 4. 

Sold Jas. Kirk & Co., 
25 bbls. Tallow, 6,250 lbs @ 4)4 

January 15th. 

Bot. of D. Henning & Co., City, 

1,000 bush. Potatoes @ 60 

250 bbls. Apples @ 2.25 

Shipped above to A. Davidson & Co.. 
Memphis, Tenn., on joint account, each 
one-half, 
A. Davidson & Co. 's one-half. 



January i6th. 

Sold P. H. Kelly & Co., from Mdse. Co. A 
50 bbls. Vinegar @ 8.00 

January 17th. 

Sold Donaldson & Co., St. Cloud, Minn., 

5 bbls. Sugar, 1,470 lbs @ ioJ4 

1,200 lbs. Bacon @ g}4 

I bbl. Syrup, 44 gals @ 56 

60 lbs. Y. H. Tea @ 50 

Cartage 



January i8th. 

Sold Beaupre, Keogh & Co., from Mdse. 
Co. A, 

50 bbls. Vinegar (a), 8.00 

10 bbls. Pickles @, 17.50 

January 19th. 

Sold Allen, Moon& Co., from Mdse. Co. A, 
40 bbls. Pickles @ i7-5o 



725 

250 
281 



600 
562 



581 



400 



154 
114 

24 
30 



400 
175 



700 



25 



00 
50 



25 



35 
00 
64 
00 
50 



00 
00 



1,162 50 



323 49 



575 



i6 



THE EXPERTS ASSISTANT. 
January 21st. 



Closed Mdse. Co. A, and rendered A. Fink 

& Co., account sales, 
A. Fink & Co., credit for their one-half of 

shipment 

A. Fink & Co., credit for their one-half 

of net gain ,. 

Storage and Advertising 

Commission on 1,675.00 @ 2 
Our one-half net gain 



January 22d. 

Bot. of Sprague, Warner & Co., Chicago, 
^ 3 mos., 

as per invoice 



Mdse. 



January 23d. 

Sold H. Wilson & Co., Fargo, @ 60 days 

5 bbls. Sugar, 1.450 lbs @ io>^ 

2 bbls. Syrup, 87 gals @ 56 

100 lbs. Tea @ 55 

Cartage 



January 24th. 

Sold Fisher & Kellogg, City, 
2 bbls. Sugar, 550 lbs @ 10 

1 bbl. Syrup, 44 gals ® 5^ 

January 25th. 

Sold E. H. Taylor & Co., Stillwater, 

100 lbs. Piper Heidsick Plug @ 42 

2 m. G. M. Cigars @, 67.50 

2 m. P. B. Cigars 35.00 

January 26th. 

Sold H. Wilson & Co., Fargo, 

1,000 lbs. Bacon @/ 9)4 

2 bbls. Mess Pork @ 17.00 

Cartage 

January 28th. 

Received account sales from A. Davidson 
& Co. of shipment of Apples and Po- 
tatoes, 
Our net proceeds 



January 29th. 

Sold W. H. Johnson & Co., Brainerd, 

200 lbs. Rio Coffee @) 23 

150 lbs. Tea @, 55 

50 boxes Soap, 3,000 lbs @ 4 

2 m. G. M. Cigars ©67.50 

Cartage 



725 

59 
15 
41 
59 



3,750 00 



152 

43 
55 



697 



46 

82 

120 

135 



50 



900 



251 



82 



47 



39 



247 



129 



25 



384 



THE EXPERTS ASSISTANT. 
January 30th. 



17 



Received of H. P. Upham & Co., their note 
(rt) 60 days, in settlement of account 

Accepted A. Fink & Co.'s draft, 10 days' 
sight, to balance account 

January 31st. 

Sold Donaldson & Co., St. Cloud, 

50 cases Canned Peaches @ 6.50 

25 cases Canned Apricots @, 7.00 

25 cases Canned Plums @ 6.75 

Sold Durant & Co., Fergus Falls, for note @ 
60 days, 

100 cases Canned Goods, asstd @ 6.50 

5 bbls. Sugar, 1,460 lbs @ io>^ 

300 lbs. Coffee @ 24 

Cartage 



[ 

3,740 


70 




1,509 


07 




325 


00 




175 


00 




168 


75 


668 


650 


00 




153 


30 




72 


00 






50 


875 


' 







75 



80 



THE EXPERTS ASSISTANT. 



1890. 



Dr. Cash. 



Jan. 



To B. K. Marshall, Investment 

B.S. Knowlton, Investment 

First Ntl. Bk., 225.00, 50.00, 75.00, 

First Natl. Bank 

Mdse., per Sales Book 

Mdse., per Sales Book 

First Natl. Bank 

Mdse., per Sales Book 

First Natl. Bank 

Int. and Dis., P. N. & Co 

Mdse., per Sales Book 

Bills Rec, B. S. & Co 

Mdse., per Sales Book 

Mdse., per Sales Book 

First Natl. Bank, 62.50, 215.00 

Mdse., per Sales Book 

Mdse., per Sales Book 

E. H. Taylor & Co 

First Natl. Bank 

Int. and Dis., McV. & Co 

Mdse., per Sales Book 

First Natl. Bank 

Mdse., per Sales Book 

Fisher & Kellogg 

First Natl. Bank 

Mdse., per Sales Book 

First Natl. Bank 

Mdse., per Sales Book 

Int. and Dis.,J. K. &Co 

First Natl. Bank 

Mdse., per Sales Book 

Mdse., per Sales Book 

W. H.Johnson & Co 

Mdse., per Sales Book 

Mdse., per Sales Book 

Beaupre, Keogh & Co 

Mdse., per Sales Book 

A. Davidson & Co 

Mdse., per Sales Book 

Allen, Moon & Co 

W. H. Johnson & Co 

Mdse., per Sales Book , 



Mdse., per Sales Book... 
Int and Dis., O. T. Co. 

First Natl. Bank 

Mdse., per Sales Book... 
Mdse., per Sales Book... 



To Mdse. total for month. 



To Sundries total for month. 
Grand total 



Mdse. 


SUNDRI 


ES. 


Balances. 






25,000 


00 










25, 000 


00 










450 


00 










375 


00 






162 


50 










257 


25 


127 


00 






347 


00 


4,568 
397 


.6 

24 






565 


50 


5,261 


90 






287 


35 










145 


60 


277 


50 






375 


80 










428 


40 


3,482 
302 


00 
20 
80 






248 


25 


85 


00 






135 


00 


75 
175 


00 
00 






275 


00 


1,162 


50 






487 


50 


32 

368 


50 

75 






148 


90 










243 


00 


300 


00 






178 


25 










290 


35 


575 


00 






540 


00 


1,278 


75 






188 


40 


700 
450 


00 
00 






296 


50 










347 


45 


287 
5,462 


50 
50 






235 


00 










185 


60 










6,368 


60 








76,444 


40 










82,813 


00 






















82,813 


00 



THE EXPERT S ASSISTANT. 



19 



1890. 



Cr. Cash. 



Jan. 



By First Natl. Bank, Deposit 

" Freight, 225.00, 50.00 

" Expense, Stationery 

" Expense, Cartage 3.00, Stamps 2.50.... 

" Expense, Ins. on 50,000 

" Freight 

" Freight 

" Expense, Cartage 5 00, Sundries .75... 

" First Natl Bank, Deposit , 

" Perry, Nichols & Co 

" Freight 

" First Natl. Bank, Deposit 

" Int. and Dis., B. S. & Co 

" Expense, Cartage 3.00, Sundries 3.85.. 

" First Natl. Bank, Deposit 

" Freight 

" Mdse.. 100 bbls. Apples 

" Mdse. Co. A., Freight and Cartage 

" Expense, Sundries 

" First Natl. Bank, Deposit 

" McVeigh & Co 

" Expense, Pay Roll 

" Expense, Coal 

" Int. and Dis., Interest on Mortgage.... 

" Expense, Sundries 

" First Natl. Bank, Deposit 

" D. Henning&Co 

" Expense, Cartage, etc 

" Jas. Kirk & Co 

" Mdse., Sundries.. 

" Expense, Sundries 

" First Natl. Bank, Deposit 

" Expense, Sundries 

" Freight 

" First Natl. Bank, Deposit 

" Expense, Sundries 

" Int. and Dis., A. D. & Co 

" First Natl. Bank, Deposit 

" Expense, Sundries 

" Storage and Advt 

" First Natl. Bank, Deposit 

" Expense, Sundries 

" Oriental Tea Co 

" First Natl. Bank, Deposit 

" Expense, Sundries 

" Expense, Pay Roll 



By Expense total for month. 
By Sundries total for month. 

Grand total 

By Balance on hand 



Expenses. 



75 00 

5 I 50 
375 



75 



212 

85 



II 
212 



1,056 



85 



Sundries. 



50,000 

275 



52 
127 

750 
4,965 

165 

5,188 

73 

500 
62 

215 
50 

1. 050 
3,785 



175 



750 
1, 162 



368 
57 



45 
1,375 



5 
1.778 



25 
1,500 



5,750 
750 



81,503 



50 



Balances. 



82, 560 
252 



2,813 I 



20 



Mdse. Sundries. 



THE EXPERTS ASSISTANT. 

January ist, 1890. 



Sundries. Mdse. 





50 
00 
50 

00 
00 

00 

00 
50 


13, 500 
1,500 

1,234 

454 

991 

5,261 

75 

493 

6,250 
3,740 

725 
281 

581 


00 
00 

00 

25 

75 

90 
00 
00 

00 
70 

00 

.5 

25 
25 




Sundries Dr. to Sundries, 
Real Estate. 
Furniture and Fixtures, 

Mortgage Payable 

Bills Payable 


10, 000 

4,850 

1.50 

4.965 
14, 000 

3.075 
2,700 

2,750 

5,187 

650 
900 

5,750 

3,785 

725 
250 

1, 162 


00 
00 
00 

50 
00 

00 
00 

00 
50 

00 
00 

GO 

00 

00 
00 

50 


1.234 

454 

991 
5,829 

9,990 

281 
1, 162 




18, 965 


Interest and Discount. 

Mdse. Dr. to Sundries, 

Perry, Nichols & Co- 
Bills Payable 




5,775 
7,937 


3d. 
Mdse. Dr. to Sundries 

C.A. Pillsbury & Co.. 
Armour Packing Co... 

4th. 
Mdse.IDr. to Sundries, 

Bills Payable 






N. Y. Refining Co.... 

5th. 
A. H.Jones & Co., Dr. to 

Mdse 




1,550 


7th. 
Mdse. Dr. to Sundries, 

Jas. Kirk & Co 






N. K. Fairbanks & Co. 

H. Wilson & Co., Dr. to 

Mdse . . .. 


25 


5,750 


8th. 
Mdse. Dr. to 

Oriental Tea Co 


3,785 


W. H. Johnson & Co., Dr. to 

Mdse.... 

9th. 
Sundries Dr. to Mdse., 
Bills Receivable. 
Fisher & Kellogg. 
E.H. Taylor & Co. 

nth. 
Mdse. Dr. to 

McVeigh & Co 


75 
90 


250 


Sundries Dr. to Mdse., 
First Nat. Bank Stock 
H. P. Upham & Co. 

12th. 
Mdse. Co. A Dr. to 

A. Fink & Co 

14th. 
Mdse. Dr. to 

Jas. Wilson & Co 


70 


1.162 


Jas. Kirk & Co., Dr. to 

Mdse 

15th. 
Mdse. Dr. to 

D Henning & Co 


25 




Sundries Dr. to Mdse., 
Shipment to Memphis. 
A. Davidson & Co. 

Carried Forward 


50 


45. 175 


so 


35.669 


35 


60, 900 


50 


19, 944 


35 

















































THE EXPERT S ASSISTANT. 








21 


Mdse. Sundries. January 15th, 1890. 


Sundries. 


Mdse. 




45. 175 


50 


35,669 
400 


35 
00 




Bfousht FoTwcLfd. 


60, 900 
400 


50 
00 


19,944 


35 




P. H.Kelly & Co., Dr. to 

Mdse. Co. A 












17th. 














323 


49 




Donaldson & Co., Dr. to 

Mdse 






323 


49 












18th. 












575 


00 




Beaupre, Keogh & Co., Dr. to 

Mdse. Co. A... 

19th. 


575 


00 










700 


00 




Allen, Moon & Co., Dr. to 

Mdse. Co. A... 

2ISt. 


700 


00 










900 


00 




Mdse. Co. A. Dr. to Sundries, 

A. Fink & Co 


784 
15 
41 
59 


07 

GO 
87 
06 








Storage and Advertising. 
Commission 






Profit and Loss 








• 






22d. 










■ 3. 750 


00 








Mdse. Dr. to 

Sprague, Warner & Co.. 

23d. 


3,750 


00 






■ 




251 


47 




H. Wilson 8z; Co., Dr. to 

Mdse 






251 


47 




1 






24th. 














82 


39 




Fisher & Kellogg, Dr. to 

Mdse 






82 


.39 






. 






25th. 














^47 


00 




E. H. Taylor & Co., Dr. to 

Mdse 






247 














26th. 














129 


25 




H. Wilson & Co., Dr. to 

Mdse 






129 


25 












28th. 












•697 


50 




A. Davidson & Co., Dr. to 

Shipment to Memphis... 

29th. 


697 


50 










384 


00 




W. H. Johnson & Co., Dr. to 

Mdse 

30th. 






384 


00 






3,740 


70 




Bills Receivable, Dr. to 

H. P.Upham&Co... 


3, 740 


70 










1,509 


07 




A. Fink & Co., Dr. to 

Bills Payable 

31st. 


1,509 


07 










668 
875 


g 




Sundries Dr. to Mdse., 
Donaldson & Co. 
Bills Receivable. 

Mdse. Dr. for total purchases for mo. 






1,544 


55 


48,925 






50 








Mdse. Cr. for total sales for mo 






22, 906 


50 


48,925 


50 


47, 153 


77 


1 73, 172 


_77_ 


22, 906 


50 


1 1 


1 


' 



22 



THE EXPERTS ASSISTANT. 
B. K. Marshall. 



1890 

Jan.f I By Cash In vestment... 



B. S. Knowlton. 









Jan. 


I 



By Cash Investment... i 25,000 00 



First National Bank. 



1890 
Jan. 



To Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 



Deposit 
Deposit 
Deposit 
Deposit 
Deposit 
Deposit 
Deposit 
Deposit 
Deposit 
Deposit 
Deposit 





50, 000 


00 


.Jan. 


I 




750 


00 




2 




5,188 


24 




5 




500 


00 




8 




1,050 


00 




II 




750 


00 




14 




500 


00 




IS 




1,375 


00 




16 




1,778 


75 




17 




1,500 


00 




18 




750 


00 




30 



By Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 



Checks, 
Checks. 
Checks, 
Checks, 
Checks. 
Checks, 
Checks, 
Checks, 
Checks. 
Checks. 
Checks. 



450 
375 
127 

4,568 
277 

3.482 
85 

1, 162 

368 

5,462 



Merchandise. 



Jan. 



ToCash 

'■ Cash 

' ' Sundries for month 





215 


00 


,Tan. 


31 




57 


80 




31 




48,925 


50 







By Cash Sales for mo... 
" Sun.Cr. Sales for mo 



6, 368 60 
22, 906 50 



Cash. 



Jan. 



To Receipts for month 



82,813 



Jan, 



31 



By Disb'^ments for mo, 



82, 560 46 



Freight. 



Jan. 



To Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 





275 


00 








52 


50 








127 


00 








165 


00 








62 


SO 








45 


60 







THE EXPERTS ASSISTANT. 
Interest and Discount. 



23 



1890 
Jan. 



To Cash 
" Cash 
" Cash 









1890 






73 


66 


Jan. 


I 




175 


00 




8 




5 


81 




30 



^y 



Real Estate 

Cash P. N. & Co. 
Cash McV. & Co. 
Cash J K.&Co.. 
Cash O. T. & Co. 



150 I 00 
397 I 24 
302 80 
32 50 
287 50 



Real Estate. 



Jan. I To Sundries. 



Furniture and Fixtures. 



Jan. 



To Sundries. 





1,500 


00 







Mortgage Payable. 



Jan. I By Real Estate- 



Bills Payable. 









Jan. 


I 

I 

4 

30 



By Sundries 

" Mdse 

" Mdse 

" A. Fink & Co 



4.850 
14,000 
2,750 
1,509 



Bills Receivable. 



Jan. 



To Mdse. B. S. & Co.. 
" H. P. Upham & Co, 
" Mdse 





5.261 


90 1 


Jan. 


9 


•i 


3,740 


70 








875 


80 







By Cash. 



5,261 



90 



24 



THE EXPERTS ASSISTANT. 
Perry, Nichols & Co., New York. 



1890 
Jan. 



To Cash. 



1890 
4' 965 50 Ijan. I By Mdse. 4 mos, 



4.965 50 



C. A. Pillsbury & Co., Minneapolis. 



Jan. 3 By Mdse. 30 days 3.075 00 



Armour Packing Co., Chicago. 









Jan. 


3 



By Mdse. 30 days.. 



2,700 



New York Refining Co., New York. 



Jan. 4 By Mdse. 3 mos.. 



5.187 



50 



A. H. Jones & Co., Denver, Col. 



Jan. 8 To Mdse. 3 mos. 





1,234 


00 







Jas. Kirk & Co., Chicago. 



Jan. 


14 
18 


To Mdse 




281 

368 


25 
75 


Jan. 


7 


By Mdse 




650 


GO 


" Cash 








650 


00 


650 


00 






















N. K. Fairbanks & Co., Chicago. 









Jan. 


7 



By Mdse. 30 days.. 



900 



THE EXPERTS ASSISTANT. 
H. Wilson & Co., Fargo, Dak. 



25 



1890 
Jan. 



To Mdse. 60 days. 
" Mdse. 60 days. 
" Mdse 





454 


25 








251 


47 








129 


25 







Oriental Tea Co., San Francisco. 



.Jan 30 To Cash. 



5, 750 00 Jan. 8 i By Mdse. 4 mos 



W. H. Johnson & Co., Brainerd. 



Jan, 



To Mdse. 
" Mdse. 





J. 


75 
00 


Jan. 


21 
28 



By Cash. 
" Cash. 



300 
450 



Fisher & Kellogg, City. 



Jan, 



To Mdse. 
" Mdse. 





75 
82 


00 
39 


Jan. 


16 



By Cash. 



75 



E. H. Taylor & Co., Stillwater. 



Jan, 



10 . To Mdse. 
2s " Mdse. 



1 


493 


00 


Jan. 


14 


1 


247 


00 







By Cash. 



250 



McVeigh & Co., Chicago. 



Jan. 



14 To Cash., 



3,785 CO Jan II By Mdse. 4 mos 



3.785 00 



Fir.st National Bank Stock. 



Jan. II To Mdse. 



i 


6, 250 00 







26 



THE EXPERT S ASSISTANT. 
H. P. Upham & Co., City. 



A. Fink & Co., Chicago. 



1890 
Jan. 


II 


ToMdse 


r= 


3,740 


70 


1890 

Jan. 


30 


By Bills Rec 




3.740 


70 




















Merchandise Co. A. 


Jan. 


12 

12 
21 


To A. Fink & Co 




725 GO 
50 1 00 

900 1 CO 


|jan. 

i 
1 


16 
18 
19 


By P. H.Kelly & Co.... 
" Beaupre, K. & Co... 
" Allen, Moon & Co.. 




400 

575 
700 




" Cash, Freight 

" Sundries.... 


00 
00 




1,675 j 00 


1.675 


00 

















Tan. 


30 


To Bills Payable 




I ^OQ 


„,l 


1 

Jan. 

1 


12 

21 


By Mdse. Co A 




725 
784 


00 








" Mdse. Co. A 


07 








1.509 


07 


1.509 


07 








— 















James Wilson & Co., City. 



Jan. 14 By Mdse. 



250 00 



D. Henning & Co., City. 



Jan. 17 



To Cash. 



1, 162 



50 



Jan. 



By Mdse. 



1, 162 



50 



Shipment to Memphis. 



Jan. 15 To Mdse. 



581 25 Jan. 28 By A. Davidson & Co.. 697 50 



A. Davidson & Co., Memphis, Tenn. 



Tin 


15 


To Mdse 




gj 


25 
50 


Jan. 

i 

i 


28 


By Cash...^ 




1,278 


75 




" Ship't. to Memphis 






1.278 


^5_ 


1,278 


_75_ 



















THE EXPERTS ASSISTANT. 
P. H. Kelly & Co., City. 



27 



1S90 
Jan. 15 



To Mdse. Co. A. 





400 


DO 


1 
1 





Donaldson & Co., St. Cloud. 



Jan. 



To Mdse. 
" Mdse. 





a 


49 
7.5 







Beaupre, Keogh & Co., City. 



Jan. 18 To Mdse. Co. A. 



1890 
575 00 Jan. 23 By Cash 



575 00 



Allen, Moon & Co., City. 



Jan 



19 i To Mdse . Co. A. 



Jan, 



By Cash. 



Storage and Advertising. 



Jan. 26 To Cash. 



25 CO Jan. 21 By Mdse. Co. A 



Commission. 



Jan. 21 By Mdse. Co. A., 



87 



Profit and Loss. 



Jan. 21 By Mdse. Co. A. 



59 06 



28 



THE EXPERTS ASSISTANT. 
Sprague, Warner & Co., Chicago. 



1890 

Jan. 22 By Mdse. 3 mos.. 



3,750 



Expense. 



1890 

Jan. 31 To Cash, exp. for mo... 



1, 056 85 



THE EXPERT S ASSISTANT. 



29 



TRIAL BALANCE B. K, MARSHALL & CO., JAN. 31, 1890. 



Names. 



B. K.Marshall 

B. S. Knowlton 

First National Bank 

Merchandise 

Cash 

Freight 

Interest and Discount 

Real Estate 

Furniture and Fixtures 

Mortgage Payable 

Bills Payable 

Bills Receivable 

C. A. Pillsbury& Co 

Armour Packing Co 

New York Refining Co 

A. H. Jones & Co 

N. K. Fairbanks & Co 

H. Wilson & Co 

W. H. Johnson & Co 

Fisher & Kellogg 

E. H. Taylor & Co 

First National Bank Stock 

Jas. Wilson & Co 

Shipment to Memphis 

P. H. Kelly & Co 

Donaldson & Co 

Storage and Advertising.... 

Commission 

Profit and Loss 

Sprague, Warner & Co 

Expense 



Accts. Baled. 

4, 965 . 50 Proof by Totals. 

650.00 

5,750.00 Posted to Cash Acct 

3, 785.00 Posted from Cash to all Accts... 

3,740.70 Posted from Journal to Mdse.... 

1,675.00 Posted from Journal to Sundry 

1, 509.07 Accts 

1, 162.50 

1,278.75 
575.00 Less Accts. Balanced during 
700.00 month 

25.791 52 Trial Balance should foot 



Totals. 



Cr. 



64, 141 
49. 198 
82,813 

727 

13, 500 
1,500 



9,878 



1,234 

834 

1,375 

157 

740 

6,250 



400 

992 

25 



1,056 



235, 661 



Dr. 

82,813 
82, 560 
48, 925 

47, 153 



261,452 
25, 791 



235. 661 



40 



85 



77 



25, 000 
25, 000 
16, 533 
29. 275 
82, 560 

1, 170 



10, 000 
23, 109 
5, 261 
3.075 
2,700 
5,187 

900 

750 
75 
250 

250 

697 



15 

41 

59 

3,750 



235,661 



Cr. 

82, 560 
82,813 
22, 906 

73, 172 



73 261,452 
52 25, 791 



46 
00 
50 

77 

73 

52 



21 235, 661 

I 



Differences. 



47, 608 

19, 923 

252 

727 

13, 500 
1,500 



4,616 



834 
625 
82 
490 
1250 



400 

992 

10 



1,056 



85 



915 



000 
109 

075 
700 
187 

900 



250 
116 



41 
59 
750 



100, 104 



07 



32 



30 



THE EXPERTS ASSISTANT. 



PROOF OF TRIAL BALANCE BY DIFFERENCES, JAN. 31, 1890. 



Debit Side. 



Previous Balance 

Mdse.Cr. Purch., mo... 
Mdse. Cash Purch., mo. 

Expense Account 

Cash Balance 

Bank Balance 

Freight Account 

Real Estate 

Furniture and Fixtur's 
Storage and Adv. Bal.. 

Total Increase 

Mdse. Cash Sales 

Mdse. Cr. Sales, Kirk 

& Co 

Mdse. Ship, to M'mph's 
Mdse.Co.A.Frt. & Stor. 
Cash Received on Ac. 
Cash Rec'don Bills Rec 



Total to be deducted... 
Trial Bal. should foot.. 



Increase. 


Decrease. 


00, 000 


00 






48, 925 


50 






272 


80 






1,056 


85 






252 


54. 






47,608 


28 






727 


60 






13, 500 


CO 






1,500 


00 






10 


00 






113,853 


,S7 






6,368 


60 






281 


25 






697 


•SO 






65 


00 






1.075 


00 






5,261 


90 


13. 749 


25 


13, 749 


25 


100, 104 


32 















Credit Side. 



Previous Balance...... 

B. K. Marshall 

B. S. Knowlton 

Mdse. Cr. Purch., mo. 

Mortgage Payable 

Bills P'b'leac.R'l Est. 
Bills Payable ac.Mdse. 

Co. A 

Interest and Dis. Bal.. 
Shipment to Memphis 

ac. Profit 

Commission 

Profit and Loss 

Total Increase 

Cash pay'ts ac. Mdse. 

P. N. &Co 

Cash pay'ts ac. Mdse. 

O.T.Co 

Cash pay'ts ac. Mdse. 

McV. &Co 

Cash pay'ts ac. Mdse. 

H. &Co 

Cash pay'ts ac. Mdse. 

J.K. & Co 

Mdse. pay'ts ac. J. K. 

& Co 

Total to be deducted.. 
Trial Bal. should foot 



Increase. 



00, 000 


GO 


25, 000 


00 


25, 000 


00 


48, 925 


50 


10, 000 


00 


4,850 


00 


1,509 


07 


915 


57 


116 


25 


41 


87 


59 


06 



116,417 



16,313 



32 



Decrease. 



4,965 



50^ 



5,750 I 00 



3,785 

1, 162 

368 

281 



16,313 



THE EXPERTS ASSISTANT. 3 1 

In this illustration, as it is the commencement of the business, we 
have no previous trial balance to take into account 

The debit side of the trial balance will be increased by the credit 
and cash purchases of merchandise, as, the balance of that account 
being on the debit side, they represent that much of an asset; it will 
be increased by the balance in bank and cash on hand, as they also 
represent a part of the assets ; by the cost of real estate and fur- 
niture and fixtures, for the same reason, and by the net amount 
charged to Expense, Freight and Storage and Advertising, as they 
represent an apparent asset until closed by Profit and Loss. 

The debit side will be decreased by the cash sales of merchandise 
and by credit sales of the same to persons having a credit balance, 
as it is an exchange of one form of asset for another, which has been 
accounted for in the Cash and Merchandise accounts ; by the re- 
ceipts on Bills Receivable and accounts showing a debit balance, as 
they decrease the assets, and by the amounts credited to shipments 
of merchandise on joint account, as they represent an apparent re- 
duction of assets ; also, by the cash payments for freight and charges 
for storage and advertising on property received on joint account, 
where those accounts {i. e., Storage and Advertising) show a debit 
balance, as they also diminish the apparent assets. 

The credit side will be increased by the investment in the busi- 
ness, as it is a liability of the business; by the credit purchases of 
merchandise, as they represent the amount of liability incurred for the 
same ; by the Mortgages and Bills Payable given for the purchase of 
property, other than merchandise, as they are not shown in the credit 
purchases of merchandise and constitute a liability ; by the net 
amount to the credit of shipments on joint account, as they repre- 
sent an apparent liability until closed by Profit and Loss, and by the 
net amount to the credit of Interest and Discount, Commission and 
Profit and Loss, as they are apparent liabilities. 

The credit side will be decreased by all payments, either in cash 
or merchandise, on Bills Payable and accounts showing a credit 
balance, as they diminish the apparent liabilities. 

The proof in the accompanying illustrations has been made more 
in detail than is necessary, in order that it maybe more readily un- 
derstood. 



32 THE EXPERTS ASSISTANT. 



MERCANTILE BOOKS: — Continued. 

DAY BOOK, CASH BOOK, JOURNAL AND LEDGER. 

TRIAL BALANCE BY TOTALS AND DIFFERENCES. 

PROOFS BY TOTALS AND DIFFERENCES. 



THE EXPERTS ASSISTANT. 
February ist, 1890. 



33 



Sold Fisher & Kellogg, City, 

100 cases Canned Goods, asstd @ 6.75 

50 lbs. Climax Plug ©40 

1 m. Key West Cigars 

2d. 

Sold A. H. Jones & Co., Denver, Col., 
25 cases Champagne Piper Heidsick, 

pts @, 26.50 

25 cases Champagne Piper Heidsick, 

qts @ 24.50 

4th. 

Sold H. Wilson & Co., Fargo, Dak., 

5 bbls. Sugar, 1,475 lbs @ 10 

2 bbls. Syrup, 92 gals @ 55 

250 lbs. Rio Coffee @/ 25 

100 lbs. Java Coffee @ 28 

200 lbs. Y. H. Tea @ 50 

Cartage 

5th. 

Sold E. H. Taylor & Co., Stillwater, 

10 bbls. Mess Pork @ 15.20: 

1,250 lbs. Bacon @ 10 

50 cases Canned Goods, asstd @ 6.75 

Cartage 

6th. 

Sold P. H. Kelly & Co., City, 

25 bbls. Mess Pork @ 15.10 

5,000 lbs. Bacon Sides @ 9 

7th. 

Sold Donaldson & Co., St. Cloud, 

100 lbs. Climax Plug @ 50 

100 lbs. P. H. Plug @, 55 

2 m. Key West Cigars @ 50.00 

I m. G. M. Cigars 

8th. 

Hot. of Sprague, Warner & Co., 
Mdse., as per invoice 



9th. 

Sold W. H. Johnson & Co., Brainerd, 

10 bbls. Sugar, 3.150 lbs @ 10 

5 bbls. Syrup, 210 gals @ 55 

Cartage 



nth. 

Sold H. P. Upham & Co., for their note @ 
60 days, 

10 m. Key West Cigars @ 47-50 

10 m. G. M. Cigars @ 34.00 



675 
20 
50 



662 

6T2 



147 
50 
62 
28 

100 



152 
125 

337 



377 
450 



50 

55 

100 

35 



00 
00 
00 



50 
50 



50 
60 
50 
00 
00 
50 



00 
00 
50 
50 



50 
00 



00 
00 
00 
00 



1,825 



315 
115 



00 
50 
50 



745 



1,275 



389 20 



615 



827 50 



240 00 



475 
340 



00 
00 



431 00 



815 



34 



THE EXPERTS ASSISTANT. 
February 12th, 1890. 



Sold Fisher & Kellogg, 

20 boxes Soap, 1,200 lbs @ 4 

500 lbs. Lard @ 10 

1,000 lbs. Bacon @ 10 

250 lbs. Java Coffee @ 28 

150 lbs. Rio Coffee @ 25 

13th. 

Sold P. H. Kelly & Co., 
250 cases Canned Goods, asstd @ 6.25 

14th. 

Sold Allen, Moon & Co., for their note @ 
30 days, 
10 m. H. C. Conchas, imported...® 75.00 

15th. 

Sold Donaldson & Co., St. Cloud, 

50 cases Canned Goods, asstd @ 6.75 

50 boxes Soap, 3,000 lbs @ 4 

1,000 lbs. Lard , @ 10 

5 bbls. Coal Oil, 225 gals @ 11 

Cartage 



i6th. 

Sold E. H. Taylor & Co., Stillwater, 

5 m. Key West Cigars @ 50.00 

5 m. G. M. Cigars @ 3400 

5 bbls. Sugar, 1,625 lbs '. @ 10 

5 bbls. Syrup, 125 gals @ 55 

Cartage 



i8th. 

Sold Jas. Walker & Co., for their note @ 
60 days, 

1,000 lbs. Climax Plug ©45 

500 lbs. P. H. Plug @ 50 

5 m. H. C. Conchas, imported @ 75.00 

19th. 

Sold H. Wilson & Co., 

1,000 lbs. Bacon © 10 

1,000 lbs. Lard @ 10 

50 boxes Soap. 3,000 lbs @ 4! 

10 bbls. Coal Oil, 445 gals @ iij 

10 bbls. Mess Pork @ i5-4o: 

Cartage ' 



48 

50 

100 

70 

37 



1,562 



750 



337 

120 

100 

24 



250 

170 

162 

68 



50 



450 00 
250 00 

375 00 



100 00 
100 j 00 
120 00 

48 195 

154 : 00 

I ioo 



305 50 



581 



75 



651 



75 



1,075 



523 



95 



THE EXPERTS ASSISTANT. 



35 



February 20th, 1890, 



Sold P. H. Kelly & Co., 

10 m. H.C. R.V. Cigars, imported, (rt) 125.00 

2ISt. 

Sold W. H. Johnson & Co., Brainerd, 

500 lbs. Java Coffee (a), 28 

500 lbs. Rio Coffee @ 25 

250 lbs. Y. H. Tea @ 50 

5 m. G. M. Cigars @ 3500 

Cartage 

22d, 

Sold Donaldson & Co., St. Cloud, 

5 bbls. Mess Pork @ i5-45 

1,500 lbs. Bacon @ 10 

2,000 lbs. Lard @, 10 

100 boxes Soap, 6,000 lbs @ 4 

Cartage 

23d. 

Sold H. Wilson & Co., 

5 m. G. M. Cigars ..@ 35 00 

5 m. Punch Cigars @ 25 00 

100 lbs. Climax Plug @ 48 

25th. 

Bot. for note @ 60 days, of Perry, Nichols 
&Co., 
Mdse , as per invoice 

26th. 

Sold P. H. Kelly & Co., 

150 cases Canned Goods, asstd @ 6.50 

27th. 

Sold H. Wilson & Co., 

100 lbs. Tea @, 48 

500 lbs. Rio Coffee @ 24 

Cartage 

28th. 

Sold P. H. Kelly & Co., 

5 m. H. C. Concha Cigars, imptd...@ 75.00 
5 m. Key West Cigars @, 48.00 



1,250 



140 
125 
125 
175 



77 
150 
200 

240 

I 



175 
125 



2,560 



25 



975 00 



480 
120 



375 00 
240 I 00 



565 50 



668 75 



348 



600 



25 



615 



36 



THE EXPERTS ASSISTANT. 



1890. 




Feb. 


I 

2 
4 

5 
6 

7 

8 
9 
II 
12 
13 

14 
15 

16 
18 
19 

20 
21 
22 

23 
25 

26 

27 
28 




Mch. 


I 





Dr. Cash. 



To Balance on hand 

" First National Bank 

" Mdse., per Sales Book 

" First National Bank 

" Mdse., per Sales Book 

" H. Wilson & Co 

" First National Bank 

" Mdse., per Sales Book 

" P. H. Kelly & Co 

" Mdse., per Sales Book 

" First National Bank Stock Dividend 

" Mdse., per Sales Book 

" Donaldson & Co 

" First National Bank 

" Mdse., per Sales Book 

" First National Bank 

" Mdse., per Sales Book 

" First National Bank 

" Mdse., per Sales Book 

" First National Bank 

" Mdse., per Sales Book 

" Fisher & Kellogg 

" Mdse., per Sales Book 

" First National Bank 

" Interest and Discount P. L. & C 

" Mdse., per Sales Book 

" Mdse., per Sales Book , 

" Donaldson & Co 

" Mdse., per Sales Book 

" E. H. Taylor & Co 

" Mdse.. per Sales Book 

" H. Wilson & Co 

" Mdse., per Sales Book 

" W. H. Johnson & Co 

" Mdse , per Sales Book 

" Mdse., per Sales Book 

" Mdse., per Sales Book 

" A. H.Jones & Co 

" Mdse., per Sales Book 

" First National Bank 

" Donaldson & Co 

" Mdse., per Sales Book 

" First National Bank 

" Mdse., per Sales Book 

" P. H. Kelly & Co 

" Mdse., per Sales Book 

" H. Wilson & Co 

" Mdse., per Sales Book 



To Mdse. total for month. 

To Sundries for month 

To Cash grand total 



To Balance on hand. 



Mdse. 



565 
495 

675 
434 
656 

346 
845 
465 
324 
275 

540 
734 

675 

564 

445 

367 
645 
525 

742 

427 
648 
546 
872 



75 



Sundries. 



3,075 
2,700 

250 
50 

400 

250 

500 
250 

2,200 

1,509 

900 

82 

2,667 
82 

350 
500 
600 
550 



14, 000 
350 

3,750 

827 

525 



37,368 



39 



96 



Balances. 



252 



50, 185 



50, 438 



163 94 



25 



THE EXPERTS ASSISTANT. 



37 



1890. 



Feb. 



Cr. Cash. 



By C. A. Pillsbury & Co 

" Expense, Sundries 

" Armour Packing Co 

" Expense, Gas 50.00, Sundries 4.85... 

" First National Bank, Deposit 

" First National Bank, Deposit 

" Expense, Sundries 

" First National Bank, Deposit 

" Expense, Sundries 

" Jas. Wilson &Co 

" First National Bank, Deposit 

" Expense, Sundries 

" Mortgage Payable 

" Interest and Discount on Mortgage 

" Bills Payable, Fink & Co 

" First National Bank, Deposit 

" Expense, Sundries 

'• N. K. Fairbanks & Co , 

" Expense, Sundries 

" Freight 

" First National Bank, Deposit 

" Expense, Sundries , 

" Bills Payable, P. L. & Co 

" Expense, Sundries , 

" Expense, Pay Roll 

" Expense, Sundries 

" Mdse., per Invoice , 

" Expense, Sundries , 

" First National Bank, Deposit 

" Expense, Sundries , 

" First National Bank, Deposit 

" Expense, Sundries 

" Expense, Sundries 

" Mdse., per Invoice 

" Expense, Sundries 

" First National Bank, Deposit 

" Bills Payable, Eureka Packing Co... 

" Expense, Sundries 

" Expense, Sundries 

" Sprague, Warner & Co 

" Expense, Sundries 

" Expense, Sundries 

" Expense, Pay Roll 

" First National Bank, Deposit 

By Expense total for month 

By Sundries total for month 

By Cash grand total 

By Balance on hand 



Expenses. 


Sundries. 


Balances. 






3, 075 


00 






8 


90 


2,700 


00 






54 


«5 


'■Z 


00 
00 






12 


65 


1,250 


00 






5 


10 


250 
500 


00 
00 






6 


75 


2,000 
200 


00 
00 

07 
00 






14 


50 


900 


00 






8 


60 


18 
782 


50 
39 






13 


25 


2,750 


00 






3 


40 










212 


50 










4 


25 


795 


50 






3 


65 


2,000 


00 






4 


45 


1,600 


00 






3 


20 










9 


40 


625 


00 






6 


85 


3,100 
14,000 


00 
00 






12 


80 










6 


25 


3.750 


00 






5 


60 










9 


40 










212 


50 


4,500 


00 






618 


85 




49, 655 


46 




50, 274 


31 










163 


94 










50,438 


25 



38 



Mdse. Sundries. 



THE EXPERTS ASSISTANT. 
February ist, 1890. 



Sundries. Mdse. 







745 


00 








1,275 


00 








389 


20 








615 


00 








827 


50 








240 


00 




1,825 


00 


431 
815 
305 

1,562 
750 
581 
651 

1,075 
523 
565 
668 


00 
00 
50 
50 
00 
75 
75 
00 

95 
50 

75 




1,82s 


00 


12.022 


40 






— 









Fisher & Kellogg, Dr. to 

2d. 
A. H. Jones & Co., Dr. to 



Mdse. 



Mdse.. 



4th. 
H. Wilson & Co., Dr. to 



Mdse. 



5th. 
E. H. Taylor & Co., Dr. to 



6th. 
P. H. Kelly & Co., Dr. to 

7th. 
Donaldson & Co., Dr. to 



Mdse. 



Mdse., 



Mdse. 



8th. 



Mdse. Dr. to 



Sprague, Warner & Co. 
9th. 
W. H. Johnson & Co., Dr. to 



Mdse. 



nth. 
Bills Receivable, Dr. to 



Mdse.. 
I2th. 
Fisher & Kellogg, Dr. to 



13th. 
P. H. Kelly & Co., Dr. to 

14th. 
Bills Receivable, Dr. to 

15th. 
Donaldson & Co., Dr. to 

i6th. 
E. H. Taylor & Co., Dr. to 

i8th. 
Bills Receivable, Dr. to 



Mdse.. 



Mdse. 



Mdse. 



Mdse. 



Mdse. 



Mdse... 
19th. 
H. Wilson & Co., Dr. to 

Mdse.. 

2ISt. 

W. H.Johnson & Co., Dr. to 



22d. 

Donaldson & Co., Dr. to 



Mdse. 



Mdse. 



.Carried Forward. 







745 


00 






1,275 


CO 






389 


20 






615 


00 






827 


50 




240 


00 


1,825 


00 










431 


00 






815 


00 






305 


50 






1, 562 


50 






750 


00 






581 


75 


. 




• 
651 


75 






1,075 


00 






523 


95 






565 


50 






668 


75 


1,82s 


00 


12,022 


40 



Mdse. Sundries. 



THE EXPERTS ASSISTANT. 

February 23d, 1S90, 



39 



Sundries. Mdse. 



I. S2S 


00 

25 


12, 022 

348 

975 
600 

615 


40 
00 

00 

25 
00 




Brous^ht FoywcLfd 


1,825 
2,560 


00 
25 


12, 022 

348 

07"; 


40 
00 




H. Wilson & Co., Dr. to 

Mdse 


2,560 


25th. 
Mdse., Dr. to 

Bills Payable 






26th. 
P. H. Kelly & Co., Dr. to 

Mdse 


r\r\ 




27th. 
H. Wilson & Co., Dr. to 

Mdse 


i 

1 

600 r>z. 




2Sth. 
P.H. Kellv&Co., Dr. to 

Mdse 


615 


00 




Mdse. Dr. for total purchases for mo. 
Mdse. Cr. for total sales for mo 

j 




4.385 


14, 560 


65 


4.385 


25 


14, 560 


65 


4. 385 


25 


14, 560 


65 
















1 



40 



THE EXPERT S ASSISTANT. 
B. K. Marshall. 



1890 

Feb. I By Brot. from. 



L. A 25, 000 00 



B. S. Knowlton. 



Feb. I By Brot. from l.a. 25,000 00 



First National Bank. 



1890 
Feb. 



To Brot. 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

*' Cash 



from 

Deposit. 
Deposit. 
Deposit. 
Deposit. 
Deposit. 
Deposit. 
Deposit. 
Deposit. 
Deposit. 
Deposit. 



L.A. 


64, 141 


99 


Feb. 


I 




1,750 


00 




I 




800 


00 




2 




1,250 


00 




4 




500 


00 




7 




800 


GO 




8 




782 


39 




9 




2,000 


00 




II 




1,600 


00 




i.S 




3,100 


00 




23 




4.500 


00 




26 



By Brot. 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 

" Cash 



from 

Checks 


L.A. 


16,533 
3,075 


Checks 




2,700 


Checks.... 




50 


Checks 




250 


Checks 




2,200 


Checks.... 




1,509 


Checks.... 




900 


Checks 




2,667 


Checks 




14, 000 


Checks 




3,750 



Merchandise. 



Feb. 



To Brot. from 

'• Cash 

" Cash 

" Sundries... 



L.A. 


49, 198 


30 


Feb. 


I 




795 


50 




28 




625 


00 




28 




4,385 


25 







^7 



Brot. from 

CashS'lsformo 
Sundries Sales 


L.A. 


29, 275 
12,816 

14, 560 





Cash. 



Feb. 



To Brot. from 

" Receipts for mo 



82,813 
50, 185 



Feb. 



I 


By Brot. from 

" Disb'mtsformo 


L.A. 


82. 560 


46 


28 




50, 274 


31 



Freight. 



Feb. 



To Brot. from. 
" Cash 



L.A. 


727 
18 


60 
50 







THE EXPERTS ASSISTANT. 
Interest and Discount. 



1890 
Feb. 



1 i To Brot. from. 
' Cash , 









1890 




L.A. 


254 


47 


Feb. 


I 




200 


00 




13 



By Brot. from 

" CashP.L.&Co. 



1, 170 
82 



Real Estate. 



Feb. I To Brot. forward... L.A. 13,500 00 



Furniture and Fixtures. 



Feb. I To Brot. forward... L.A. 1,500 00 



Mortgage Payable. 



Feb. 8 To Cash 



2,000 00 Feb. I By Brot. from l. a. 10,000 00 



Bills Payable. 



Feb. 



To Cash. 
" Cash. 
" Cash. 





1.509 


07 


Feb. 


: 




2,750 


00 




25 




14, 000 


00 







By Brot. from. 
" Mdse 



23, 109 
2,560 



Bills Receivable. 



Feb. 



I 



To Brot. from l.a 

" Mdse 

" Mdse 

" Mdse 



L.A. 


9,878 
815 
750 

1,075 


40 
00 
00 
00 


Feb. 


I 



By Brot. from 



5,261 



90 



C. A. Pillsbury & Co., Minneapolis. 



Feb. I To Cash. 



3. 075 00 Feb. I By Brot. from.. l.a. 3,075 00 



42 



THE EXPERTS ASSISTANT. 
Armour Packing Co., Chicago. 



1090 
Feb. 



To Cash. 





2,700 


00 


1890 
Feb. 


I 









By Brot. from. 



New York Refining Co., New York. 



Feb. 



I By Brot. from l. A. 



5-187 



50 



A. H. Jones & Co., Denver. 



Feb. 



To Brot. from.. 
" Mdse 



L.A. 


1.234 
1,275 


00 
DO 


Feb. 


22 



By Cash. 



N. K. Fairbanks & Co., Chicago. 



Feb. II To Cash 



900 00 Feb. I By Brot. from l.a. 900 00 



H. Wilson & Co., Fargo. 



Feb. 



To Brot. from 

" Mdse 

" Mdse 

" Mdse , 

" Mdse 



L. A. 


834 


07 


Feb. 


4 




389 


20 




18 




523 


QS 




28 




348 


CO 








600 


25 







By Cash 
" Cash 
" Cash 



250 
600 
525 



W. H. Johnson & Co., Brainerd. 



Feb. 



To Brot. from. 

" Mdse 

" Mdse 



L.A. 


1,375 


75 


Feb. 


I 




431 


00 




19 




565 


50 







By Brot. from l.a, 

" Cash 



750 
550 



Fisher & Kellogg, City. 



Feb. 



To Brot. from. 

" Mdse 

" Mdse 



L.A. 


157 


39 


Feb. 


1 

I 




745 


00 




12 




305 


50 







By Brot. from., 
" Cash 



39 



THE EXPERTS ASSISTANT. 
E. H. Tavlor & Co., Stillwater. 



43 



1890 

Feb, 



To Brot. from. 

" Mdse 

" Mdse 









1 1890 




L.A. 


740 


00 


Feb. 


1 




615 


00 




16 




651 


75 


i 





By Brot. from. 
'• Cash 



250 
500 



First National Bank Stock. 



Feb. 1 I To Brot. from l. a. 6,250 00 Feb. 6 By Cash Dividend 250 00 



James Wilson & Co., City. 



Feb. 6 



To Cash. 





250 


00 


Feb. 


I 









Bv Brot. from. 



Shipment to Memphis. 



Feb. I To Brot. from l.a.I 581 25 Feb. i By Brot. from l.a. 697 50 



P. H. Kelly & Co., City. 



Feb. 



To Brot. from Il.a. 

" Mdse 

" Mdse 

" Mdse 

" Mdse 



L.A. 


400 


00 


Feb. 


S 




827 


.SO 




27 




1,562 


50 








975 


00 








615 


00 







By Cash. 
" Cash. 



400 00 

827 ! 50 



Donaldson & Co., St. Cloud. 



Feb. 



To Brot. from. 

" Mdse 

" Mdse 

" Mdse 



L.A. 


992 


24 


! Feb. 


7 




240 


00 




15 




581 


75 




25 




668 


75 


i 





By Cash. 
" Cash. 
" Cash. 



500 
350 
350 



Storage and Advertising. 



Feb. I To Brot. from. 



25 00 Feb. 



By Brot. from 



15 00 



44 



THE EXPERTS ASSISTANT. 
Commission. 



1890 

Feb. I By Brot. from. 



41 87 



Profit and Loss. 



Feb. I By Brot. from l.a. 59 06 



Sprague, Warner & Co., Chicago. 



Feb. 



To Cash. 





3,750 


00 


Feb. 


I 
8 



By Brot. from. 
" Mdse 



3,750 
1,825 



Expense. 



Feb. 



To Brot. from. 
" Cash 



L.A. 


1,056 
618 


85 
85 




' 



THE EXPERTS ASSISTANT. 



45 



TRIAL BALANCE B, K. MARSHALL & CO., FEB. 28th, 



Names. 



B. K. Marshall 

B. S. Kiiowlton 

First National Bank 

Merchandise 

Cash 

Freight 

Interest and Discount 

Real Estate 

Furniture and Fixtures 

Mortgage Payable 

Bills Payable 

Bills Receivable 

New York Refining Co 

A. H.Jones & Co 

H. Wilson & Co 

W. H.Johnson & Co 

Fisher & Kellogg 

E. H. Taylor & Co 

First National Bank Stock 

Shipment to Memphis 

P. H. Kelly & Co 

Donaldson & Co 

Storage and Advertising... 

Commission 

Profit and Loss 

Sprague, Warner & Co 

Expense 



Accts. Balanced. Proof by Totals. 

3,075.00 Trial Balance, January 

2,700.00 Posted from Journal, Sundries... 

900.00 Posted from Journal, Mdse 

250.00 Posted from Cash, all accounts... 

6, 925 . 00 

Posted from Cash to Cash 

Less acct. bal'cd. during month 
Trial Balance should foot 



Totals. 



81, 224 

55. 004 

132, 998 

746 

454 

13. 500 

1,500 

2,000 

18, 259 

12,518 

2,509 
2,696 
2,372 
I, 207 
2,006 
6,250 
581 
4.380 
2,482 
25 



3,750 
1.675 



348, 142 



Dr. 

235. 661 
14, 560 
4,385 
50, 274 



50, 185 



355. 067 
6,925 



348, 142 



25, 000 
25, 000 
47, 635 
56, 652 
132, 834 

1,252 



10, 000 

25, 669 

5, 261 

5.187 

1,000 

1.375 

1,300 

157 

750 

250 

697 

I, 227 

I, 200 

15 

41 

59 

5.575 



348, 142 



Cr. 

235, 661 
4,385 
14, 560 
50, 185 



50, 274 



355. 067 
6,925 



348, 142 



13 



Differences. 



33, 589 

163 
746 

13, 500 
1,500 



7,256 

1,509 
1,321 
1,072 
1,050 
1,256 
6,000 

3, 152 

1,282 

10 



1,675 



75, 086 



50 



25, 000 
25, 000 

1,648 



8,000 
7,410 

5,187 



4 
59 
1,825 



75, 086 



50 



45 



46 



THE EXPERTS ASSISTANT. 



PROOF OF TRIAL BALANCE BY DIFFERENCES, FEB. 28th, 1890. 



Debit Side. 



January Balance 

Mdse. Balance 

Mdse. Cash Purchases 

for month 

Mdse.Credit Purchases 

for month 

Expense for month 
Freight for month. 

Total Increase... 

Mdse. Cash Sales mo... 
Cash Decrease in Bal .. 
Bank Decrease in Bal.. 
Cash Reed, on Accts... 

Total to be deducted 

Trial Bal. should foot 



Received on Acct — 



Increase. 


Decrease. 


TOO, 104 
1,648 


32 
45 






1,420 


50 






4,385 

618 

18 


25 
85 
50 






108, 195 


87 






12,816 
88 


11 


33, 109 


42 


14,019 
6,184 


18 
89 


33, 109 


4.| 


75, 086 


45 






1,000 


00 






1,375 

550 

82 

750 

1,227 

1,200 


00 
00 
39 

CO 

50 
00 






6,184 


89 








1 



Credit Side. 

January Balance 

Mdse. Balance 

Mdse. Credit Purch.. 
Interest Received 

Total Increase 

Payments Bills P'ble 

and Accts 

Payments Interest.... 

Total to bededctd. 

Trial Bal. sh'd foot 



Payments — 
Mortgage Payable.... 
Bills Payable 

Accounts — 

3,075.00 

2,700.00 

900 . 00 

250.00 

3,750-00 



Total Payments.... 



Increase. 



100, 104 

1,648 

4,385 

82 



106, 220 



31, 134 



75, 086 



2,000 
18, 259 



10, 675 



45 



Decrease. 



30, 934 
200 



07 



THE EXPERT S ASSISTANT. 4/ 



In this illustration, in making up the proof, we start with the foot- 
ing of the previous month's trial balance, and as the balance of the 
Merchandise account has changed to the credit side, we use that 
balance to increase the debit side or assets, as it represents that 
much of the amounts due from personal accounts. The purchases 
of merchandise for cash and credit are used, as before, and for the 
same reason, as are the amounts paid during the month for expense 
and freight. 

The debit side is decreased by the cash sales of merchandise, as 
before, and by the decrease or difference in the amount of the bal- 
ance in bank and cash during the month, as the assets are reduced 
by that difference ; also, by the receipts on Bills Receivable and 
other accounts, as previously explained. 

The credit balance of the previous month is increased by the bal- 
ance of Merchandise account, it having changed to the credit side. 
That account now shows an apparent liability. It is also increased 
by the credit purchases (as they represent the liability incurred to 
others), and by the net amount of interest received during the 
month. 

The credit side is decreased by the payments on Mortgage Pay- 
able, Bills Payable and other accounts, as before. 



48 



THE EXPERTS ASSISTANT. 
March ist. 







Reed, of Swift & Co., Chicago, to be sold 
on joint acct., each J^ (Mdse. Co. B), 
500 bbls. Mess Pork @ 12.00 


6,000 
4,000 


00 
00 


10,0GO 






50,000 lbs. JLard @ 8 

2d. 


00 
















Bot. for our note, @ 3 mos., of Eureka 
Packing Co., San Francisco, 
Canned Goods, as per invoice 


5,000 


00 










4th. 














Sold Allen, Moon & Co., from Mdse. Co. B, 
for their note @ 30 days, 
100 bbls. Mess Pork @ 14.00 


1,400 


00 










5th. 














Sold Fisher & Kellogg, 

500 lbs. Bacon @ 10 

200 lbs. Lard @ 10 

2 bbls. Coal Oil, 90 gals @ 11 

6th. 


50 
20 

9 


00 
00 
90 


79 


90 
















Sold P. H. Kelly & Co., 

100 cases Canned Goods, asstd @ 6.50 

From Mdse. Co. B 


650 
950 


00 
00 


1,600 






10,000 lbs. Lard @ 9>^ 


00 






7th. 














Bot. of Perry, Nichols &Co., for our note 
@ 3 mos., 
Mdse., as per invoice 


4)625 


00 










8th. 














Reed, of A. H. Jones & Co., Denver, 
Their note @, 30 days, to balance acct.. 


1,509 


GO 










9th. 














Sold Gustav Willius, in exchange for Lot 5, 
Blk 6, Willius' Add. to St. Paul, 
50 shares First Natl. Bank Stock, @ 140.00 


7,000 


00 










nth. 














Sold E. H. Taylor & Co., 

2 bbls. Sugar, 495 lbs @ 10 

2 bbls. Syrup 85 gals @j 55 


49 
46 
28 
50 


50 

75 
00 
00 
50 


174 






100 lbs. Java Coffee @j 28 

200 lbs. Rio @j 25 

Cartage 


75 










' 





THE EXPERT S ASSISTANT. 
March 12th. 



49 



Bot. of Washburn Milling Co., for our note 
(a) 30 days, 

1,000 bbls. Flour @ 5.50 

And shipped the same to C. S. Morey & 
Co, Denver, Col., on joint acct., each j^. 

13th. 

Sold Donaldson & Co., 

100 cases Canned Goods, asstd @ 6.75 

2 m. G. M. Cigars @ 67.50 

2 m. P. B. Cigars @ 35.00 

Cartage 

14th. 

Sold J. L. Terry, 

Lot 5, Blk 6, Willius' Add., for 

On which we took a mortgage at 2 and 3 

years, @ 6%, for 

Balance Cash, as per Cash Book..2, 500.00 

15th. 

Sold H. Wilson & Co., from Mdse. Co. B, 

50 bbls. Mess Pork ©14.25 

2,000 lbs. Lard ® 9)4 

Cartage 



i6th. 

Sold W. H. Johnson & Co., 

50 boxes Soap, 3,000 lbs @ 4 

1,000 lbs. Lard @ 10 

1,000 lbs. Bacon @ 10 

100 lbs. Climax Plug © 50 

Cartage 



1 8th. 

SoldH. Wilson & Co., 

100 cases Canned Goods @ 6 75 

500 lbs. Java Coffee @ 28 

500 lbs. Rio Coffee @ 25 

100 lbs. Y. H. Tea @ 55 

Cartage 



19th. 

Sold Fisher & Kellogg, 

2 m. G. M. Cigars (a), 67.50 

3 m. P. B. Cigars @ 3500 

I m. Key West Cigars @- 50.00 



5,500 



675 

135 
70 



5,000 



712 

195 

I 



880 



50 



7,500 



908 I 50 



120 00 
100 00 
100 I 00 
00 
50 



50 



675 00 

140 00 

125 00 

55 00 

50 



135 00 

105 00 

50100 



370 



50 



995 



50 



290 



50 



THE EXPERTS ASSISTANT. 

March 20th. 



Sold Donaldson & Co., 

3 bbls. Sugar, 800 lbs @ 10 

2 bbls. Syrup, 85 gals @ 55 

100 lbs. Java Coffee @ 28 

100 lbs. Rio Coffee @ 25 

Cartage 



2ISt. 

Sold Beaupre, Keogh & Co., for note @ 30 
days, from Mdse. Co. B, 

100 bbls. Mess Pork @ 14.00 

10,000 lbs. Lard @ g}4 

22d. 

Sold E. H. Taylor & Co., 

2 m. Key West Cigars @ 50.00 

2 m. G. M. Cigars @ 67.50 

I m. P. B. Cigars 

100 lbs. P. H. Plug 



23d. 

Sold Griggs, Howe & Co., for note @ 60 

days, 

200 cases Canned Goods, asstd @ 6.60 

25th. 

Reed Acct. Sales from C. S. Morey & Co., 
of shipment of 1,000 bbls. Flour on 
joint acct.. 
Our net gain 



26th. 

Bot. of Sprague. Warner & Co., 
Mdse., as per invoice 

27th. 

Sold Allen, Moon & Co., for note @ 30 
days, from Mdse. Co. B, 

150 bbls. Mess Pork @ 14.00 

10,000 lbs. Lard @ g}4 

28th. 

Sold H. Wilson & Co., 

10 bbls. Sugar, 2,850 lbs @ 10 

5 bbls. Syrup, 215 gals @ 55 

100 lbs. G. P. Tea @ 56 

TOO lbs. Y. H. Tea @ 55 

Cartage 



1,400 
950 



100 

135 

35 

55 



1,320 



575 



2,950 



2,100 
950 



285 

118 

56 

55 



180 



25 



2,350 



325 



3-050 



514 



75 



I 



THE EXPERT S ASSISTANT. 



51 



March 29th. 







Sold Donaldson & Co., 
50 boxes Soap, 3 000 lbs @ 4 


! 

120 

45 
100 
100 

I 


00 

65 
00 
00 
50 


366 






10 bbls. Coal Oil, 415 gals @ 11 

1,000 lbs. Lard @ 10 

1,000 lbs. Bacon @ 10 

Cartao'e 


15 




30th. 

SoldE. H. Taylor & Co, 

50 cases Canned Goods, asstd @ 6.75 

10 bbls. Sugar, 2,865lbs @ 10 

5 bbls. Syrup, 22ogals @ 55 

25 boxes Soap, 1,500 lbs @ 4 

Cartaee 




337 

286 

121 

60 


50 
50 
00 
00 


80s 


KCt 






^^ 






1 





52 



THE EXPERTS ASSISTANT. 



1890. 




Dr. Cash. 


Mdse. 


Sundries. 


Balances. 


Mch 


I 
2 
4 

5 

I 

9 
II 
12 
13 
14 
15 
f6 
18 
19 
20 
21 
22 
23 
25 
26 
27 
28 
29 
30 




Xo Balance on hand 


275 
226 
247 

325 

• 174 

287 
210 
253 
187 
310 
225 
260 
231 
247 
280 
230 
241 
197 
301 

426 
201 
250 

265 
195 


80 
50 
70 

90 
25 

30 

20 

40 

50 

45 

00 

35 
50 
25 
25 
70 
50 
40 
55 

75 
20 
00 

30 
65 


575 
400 

5,187 
1,562 

147 

1,509 

500 

527 

600 

3,740 

2,500 

750 

750 

450 

1,825 

850 

300 

650 

4,564 
60 
500 

975 
500 

4,906 

93 

450 

900 


00 

CO 

50 
50 

25 

00 

00 

00 

00 

70 

00 

00 

00 

00 

00 

00 

00 

00 

62 
38 
00 

00 

00 

95 
05 

CO 

00 


163 

41,827 


94 




" Mdse., per Sales Book 




*' First National Bank 












" Fisher & Kellogg 

" MHse ner Sales Book 












" P. H. Kelly & Co 






" IVTHcfi npr Sa1p<; Bonk 












" lVrrl<;p npr Salf><; Rnok 






" BillsRec, A.H.J. & Co 

" Mdse oer Sales Book 






" E. H. Taylor & Co 






" Mdse per Sales Book 












" Mdse per Sales Book 






" Donaldson & Co 

" Mdse per Sales Book 






" BillsRec, H. P. U.& Co 






" Mdse per Sales Book 






" Real Est T L Terrv ... 






" Mdse. per Sales Book 






" H.Wi'lson & Co.. 

" Mdse. per Sales Book 






" Bills Rec A M. & Co 












" W H Johnson & Co 






" Mdse., per Sales Book.. 

" First National Bank 






" Mdse., per Sales Book 






" H. Wilson & Co 






" Mdse per Sales Book 






" Fisher & Kellogg 

*' Mdse per Sales Book 












" Mdse per Sales Book 






" First National Bank 

" Int. and Dis., P. N. & Co 

"EH Taylor & Co . 












" P H Kelly & Co 






" Mdse., per Sales Book 

" H. Wilson & Co 






" Mdse., per Sales Book 






•' First National Bank 






" Int. & Dis., E. Pkg. Co 












" Mdse per Sales Book 






" E. H. Tavlor & Co 






" Mdse. per Sales Book 












6,053 


40 








35, 773 


95 


35 








41,991 


29 















TH£ EXPERTS ASSISTANT. 



53 



1890. 



Mch. I 



Cr. Cash. 



By Expense, Gas 5500, Sunds.4.80 
Mdse. Co. B, Freight and Ctge 

Expense, Sundries 

First Natl. Bank, Deposit.... 

N. Y. Refining Co 

Expense, Sundries 

First Natl. Bank, Deposit.... 

Expense, Sundries 

Freight 

Expense, Sundries 

First Natl. Bank, Deposit.... 

Expense, Sundries 

First Natl. Bank,Dis 

Int.&Dis., A. H.J.&Co 

First Natl. Bank, Deposit.... 

Expense, Sundries 

Freight 

Expense, Sundries 

First Natl. Bank, Deposit.. . 

Expense 

First Natl. Bank, Dis 

Int.&Dis.H P.U.&Co 

First Natl. Bank, Deposit.... 
First Natl. Bank, Deposit.... 

Expense, Pay Roll 

Expense, Sundries 

First Natl. Bank, Deposit.... 

Expense, Sundries 

First Natl. Bank, Deposit... 

Sprague, Warner & Co 

Expense, Sundries 

First Natl. Bank, Deposit.... 
First Natl. Bank, Deposit.... 

Expense, Sundries 

First Natl. Bank, Deposit.... 

Expense, Sundries 

Bills Payable, P. N. & Co 

Expense, Sundries 

First Natl. Bank 

Expense, Sundries 

First Natl. Bank, Deposit.... 

Expense, Sundries 

First Natl. Bank, Deposit.... 

Bills Payable, E. Pkg. Co 

Expense, Sundries . 

First Natl. Bank, Deposit.... 

Expense, Sundries 

Expense, Pay Roll 

Expense, Sundries 



By First Natl. Bank, Deposit. 
By Expense for month 



By Balance on hand. 



Expenses. 



225 

18 



225 
9 



681 



Sundries. 



575 

1,000 
5,187 

1,862 

147 

450 

1.497 

II 

950 

527 
800 

3.723 

17 
2,850 
1,000 



450 
1.825 

1.350 
550 

850 

4.625 

750 

1,375 

750 
5,000 

450 



41, 073 



Balances. 



95 



41. 755 
236 



41,991 29 



54 



Mdse. Sundries. 



THE EXPERT S ASSISTANT. 

March ist, 1890. 



Sundries. Mdse. 







10, 000 


00 




Mdse. Co. B Dr. to 

Swift & Co 


10, 000 


00 
















2d. 










5,000 


00 








Mdse. Dr. to 

Bills Payable 


5,000 


00 
















4th. 












1,400 


00 




Bills Receivable Dr. to 

Mdse. Co. B 

5th. 


1,400 


00 










79 


90 




Fisher & Kellogg, Dr. to 

Mdse 






79 


90 












6th. 










1,600 


00 




P. H. Kelly & Co., Dr. to Sundries. 

Mdse 


950 


00 


650 


oo 




Mdse. Co. B. 














7th. 










4,625 


00 








Mdse. Dr. to 

Bills Payable 


4,625 


00 
















8th. 












1,509 


00 




Bills Receivable Dr. to 

A. H. Jones & Co. 

9th. 


1,509 


00 










7,000 


00 




Real Estate Dr. to 

First Natl. Bank Stock. 

nth. 


7,000 


00 










174 


75 




E. H. Taylor & Co., Dr. to 

Mdse. 






174 


75 












1 2th. 










5,500 


00 




C. S. Morey & Co., Dr. to 

Bills Payable. 

13th. 


5,500 


00 










880 


50 




Donaldson & Co. Dr. to 

Mdse 






880 


50 












14th. 














5,000 


00 




Mortgage Receivable Dr. to 

Real Estate. 

15th. 


5,000 


00 










908 


50 




H. Wilson & Co., Dr. to 

Mdse. Co. B... 

i6th. 


908 


50 










370 


50 




W. H. Johngon & Co., Dr. to 

Mdse 

i8th. 






370 


50 






995 


50 




H. Wilson & Co., Dr. to 

Mdse 

19th. 






995 


50 






290 


00 




Fisher & Kellogg, Dr. to 

Mdse 






290 


00 












20th. 












180 


25 




Donaldson & Co., Dr. to 

Mdse 






180 


25 












2ISt. 












2,350 


00 




Bills Receivable Dr. to 

Mdse. Co. B 

CcLfyied FovwclycL. 


2,350 


00 






9,625 


00 


38, 238 90 




44, 242 


50 


3,621 


40 






1 1 


' 






' 1 





Mdse. Sundries. 



THE expert's assistant. 55 

March 22d, 1890. Sundries. Mdse. 





90 
00 






44,242 


50 


3,621 
325 


40 
CO 






325 




E. H. Taylor & Co., Dr. to 

Mdse 












23d. 














1,320 


00 




Bills Receivable Dr. to 

Mdse 






1,320 














25th. 












575 


00 




C. S. Morey & Co., Dr. to 

Profit and Loss. 

26th. 


575 


00 






2,950 


oc 








Mdse. Dr. to 

Sprague, Warner & Co... 

27th. 


2,950 


00 










3,050 


00 




Bills Receivable Dr. to 

Mdse. Co. B 

28th. 


3.050 


GO 










514 


75 




H. Wilson & Co., Dr. to 

Mdse 






514 


75 












29th. 










366 


15 




Donaldson & Co., Dr. to 

Mdse 

30th. 






366 


15 






805 


50 




E. H. Taylor & Co., Dr. to 

Mdse . ... 






805 


50 




Mdse. Dr. for total purchases for mo. 




00 




12, 575 
















Mdse. Cr. for total sales for mo 






6,952 


80 


12. 575 


00 


45. 195 


30 




50, 817 


50 


6,952 


80 


, 


i 







56 



THE EXPERTS ASSISTANT. 
B. K. Marshall. 









1890 

Mch. 


I 



By Brot. from. 



25, 000 



B. S. Knowlton. 



Mch. I By Brot. from l. b. 25,000 00 



Merchandise. 



1890 
Mch. 



To Brot. from 

" Sundries Pur- 
chases for mo. 



L.B. 


55,004 


05 


Mch. 


I 
30 




12, 575 


00 




30 



Bv Brot. from. 
" Cash Sales for 

month 

" Sunds. Sales for 

month 



L.B. 


56, 652 


3 


6,053 




6,952 



Cash. 



Mch. 



I 


To Brot. from 


L.B. 


132. 998 


71 


30 


" Rec'pts for mo. 




41,827 


35 



Mch, 



By Brot. from 

" Disbmts. formo 



132,834 
41,755 



First National Bank. 



Mch. 



To Brot. 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
" Cash 
•• Cash 
" Cash 
" Cash 
" Cash 
" Cash 
•' Cash 
" Cash 
" Cash 
" Cash 
'• Cash 
" Cash 



from 

Deposit... 
Deposit- 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit- 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 
Deposit... 



L.B. 


81, 224 


38 


Mch. 


I 




1,000 


00 




I 




1,862 


50 




4 




450 


00 




6 




1-497 


93 




II 




950 


00 




iq 




800 


oo 




23 




3,723 


47 




28 




2,850 


00 








1,000 


00 








1, 200 


00 








450 


00 








1,350 


00 








.S50 


00 








850 


00 








750 


00 








1,375 


00 








750 


00 








450 


00 








1,300 


00 







By Brot. from 

" Cash Checks... 

" Cash Checks... 

" Cash Checks... 

" Cash Checks... 

" Cash Checks... 

" Cash Checks... 

" Cash Checks... 



47, 635 

575 

5.187 

147 

527 

1,825 

4,564 

4,906 



THE EXPERTS ASSISTANT. 
Freight. 



57 



1890 

Mcb. 



To Brot. from.. 

" Cash 

" Cash 



L. B. 


746 
147 
527 


10 

25 
00 







Interest and Discount. 



Mch. 



To Brot. from 

" Cash 

" Cash 







t 


1890 




L. B. 


454 


47 


Mch 


I 




II 


07 




23 




17 


23 




28 



Bv Brot. from-- 

'• Cash 

■' Cash 



It -252 
60 

93 



Real Estate. 



Mch. 



To Brot. from 

" First National 
Bank Stock.... 



L. B. 


13,500 
7,000 


00 
00 


Mch. 


14 
14 



By Cash 

" Mortgage Rec. 



2, 500 00 
5,000 00 



Furniture and Fixtures. 



Mch. I I To Brot. from l. 



1, 500 I 00 



Mortgage Payable. 



Mch. 



To Brot. from. 



L.B. 


2,000 


00 


Mch. 


I 



By Brot. from., 



Bills Payable. 



Mch. 



To Brot. from 
" Cash P.N. & Co 
" CashE. Pkg.Co 



L. B. 


18, 259 


i 
07 1 


1 Mch. 


I 




4,'525 


00 i 




2 




5,000 


00 




2 
2 



By Brot. from 

" Mdse 

" Mdse 

" C. S. M. & Co. 
Shipped to D, 



L. B 


25.669 
5,000 
4.625 




5,500 



58 



THE EXPERTS ASSISTANT. 



Bills Receivable. 



1890 
Mch. 



To Brot. from 

" Mdse. Co. B.... 
" A. H.J. & Co., 
" Mdse. Co. B.... 

" Mdse 

" Mdse. Co. B.... 









1890 




L.B. 


12, 518 


40 


Mch. 


I 




1,400 


00 




8 




1.509 


00 








2,350 


CO 




13 




1,320 


CO 








3,050 


00 




16 



By Brot. from 

" Cash A. H.J. & 

Co., Dis 

" CashH.P.U.& 

Co., Dis 

" Cash A.M. & Co 



5,261 
1.509 



3.740 
750 



New York Refining Co. 



Mch. 4 To Cash 





5.187 


50 


Mch. 


I 









By Brot. from l, 



5,187 



50 



A. H. Jones & Co. 



Mch. 


I 


To Brot. from 


L. B. 


2,509 


00 


Mch. 


8 


By Brot. from 

" Bills Rec 


L.B. 


1,000 
1.509 


00 
00 










2,509 


00 


2,509 


00 





















H. Wilson & Co. 



Mch. 



To Brot. from.... 
" Mdse. Co. B 

" Mdse 

" Mdse 



L.B. 


2,696 


37 


Mch. 


1 




908 


50 




15 




995 


50 




20 




514 


75 




27 



By Brot. from 

" Cash 

" Cash , 

" Cash 



1.375 
750 
850 
500 



W. H. Johnson & Co. 



Mch. 



To Brot. from. 
" Mdse 



L.B. 


2.372 


25 


Mch. 


I 




370 


50 




18 



By Brot. from- 
" Cash 



1,300 
450 



E. H. Taylor & Co. 



Mch. 



To Brot. from 

" Mdse 

" Mdse 

" Mdse 



L.B. 


2,006 


75 


Mch. 


I 




174 


75 




9 




325 


00 




25 




805 


50 




30 



By Brot. from, 

" Cash 

" Cash 

" Cash 

By Brot. from 

" Cash 

" Cash 



750 
500 
500 
900 



Fisher & Kellogg. 



Mch. 



To Brot. from. 

" Mdse 

" Mdse 



L.B. 


1,207 


89 


Mch. 


I 




79 


90 




4 




290 


00 




21 



157 39 
400 00 
300 00 



THE EXPERTS ASSISTANT. 
First National Bank Stock. 



59 



1890 

Mch. 



To Brot. from. 



L. B. 


6,250 


DO 


1890 

Mch. 


I 
9 



By Brot. from |l. 

" Real Estate.. 



250 
7, 000 



Shipment to Memphis. 



Mch. I To Brot. from l.b. 581 25 Mch. i By Brot. from l.b. 697 50 



P. H. Kelly & Co. 



Mch. 



To Brot. from l.b. 

" Sundries. 



L.B. 


4,380 


00 


Mch. 


I 




1,600 


CO 




i 



Bv Brot. from. 

" Cash , 

" Cash 



L.B. 


1,227 




1,562 




975 



Donaldson & Co. 



Mch. 



To Brot. from 

" Mdse 

" Mdse 

" Mdse 



L.B. 


2,482 


74 


Mch. 


I 




880 


50 




12 




180 


2S 




22 




366 


15 




27 



By Brot. from. 

" Cash 

" Cash 

" Cash 



I, 200 
600 
650 

450 



Storage and Advertising. 



Mch. 



To Brot. from 



L.B. 


25 


00 


Mch. 


I 



By Brot. from.., 



Commission. 



Mch. I By Brot. from l.b. 41 87 



Profit and Loss. 









Mch. 


27 



By Brot. from 

'* C.S.Morey&Co 



59 06 

575 00 



6o 



THE EXPERTS ASSISTANT. 



Sprague, Warner & Co. 



Mch. 



To Brot. from 

" Cash 









1890 




L. B. 


3.750 


00 


Mch. 


I 




1,825 


CO 




26 



By Brot. from 

" Mdse 



5,575 
2,950 



Expense. 



Mch. 



30 



To Brot. from.. 
" Cash for mo. 





L. B. 


1,675 


70 






681 


30 



Swift & Co. 



Mch. I By Mdse. Co. B.. 



10, 000 00 



Merchandise Co. B. 



Mch. 



To Swift & Co 

" Cash 



10, 000 

575 



Mch. 


4 
6 
15 
21 
27 


By Bills Rec 






" P H. Kelly & Co 
" H. Wilson & Co 
" Bills Rec 


950 

908 

2,350 

3,050 


" Bills Rec 





C. S. Moray & Co., Denver, Col. 



Mch. 



To Bills Payable, 

Shipm'nt to D 

" Profit and Loss 





5,500 

575 


00 
00 







Mortgage Receivable. 



Mch. 



To Real Estate. 





5,000 


00 

; 







THE EXPERTS ASSISTANT. 



6l 



TRIAL BALANCE B. K. MARSHALL & CO., MARCH 30, 1S90. 



Names. 



B. K. Marshall 

B. S. Knowlton 

Merchandise 

Cash 

First National Bank 

Freight 

Interest and Discount 

Real Estate , 

Furniture and Fixtures .... 

Mortgage Payable 

Bills Payable 

Bills Receivable 

H. Wilson & Co 

VV. H.Johnson & Co 

E. H. Tavlor& Co 

Fisher & Kellogg 

First National Bank Stock 

Shipment to Memphis 

P. H. Kelly & Co 

Donaldson & Co 

Storage and Advertising... 

Commission 

Profit and Loss 

Sprague, Warner & Co 

Expense 

Swift & Co 

Merchandise Co. B 

C. S. Morey & Co 

Mortgage Receivable 



Proof by Totals. 

February Balance 

Posted from Journal to Mdse 

Posted from Journal to Sundries Acct. 

Posted from Cash to all accounts 

Posted to Cash 

Less accounts balanced during month 
Trial Balance Sheet should foot 



L. F. 




Totals. 








25. 000 


00 








25, 000 


00 




67, 579 


05 


69,658 


70 




174, 826 


06 


174, 590 


02 




104, 383 


28 


65,368 


60 




1,420 


35 








482 


77 


1,405 


97 




20, 500 


00 


7,500 


00 




1,500 


00 








2,000 


00 


10,000 


00 




27, 884 


07 


40, 794 


32 




22, 147 


40 


11,261 


60 




5. "5 


12 


3,475 


00 




2,742 


75 


1,750 


00 




3.312 


00 


2,650 


00 




1.577 


79 


857 


39 




6,250 


00 


7,250 


00 




58r 


25 


697 


50 




5.980 


00 


3,765 


00 




3,909 


64 


2,900 


00 




25 


00 


15 

41 


00 




5.575 


00 


8,525 


00 




2,357 


00 


10, 000 


00 




10, 575 


00 


8,658 


50 




6,075 


00 








5,000 


00 




1 


481, 798 


53 


481, 798 


53 




348, 142 


13 


348, 142 


13 




12, 575 


00 


6,952 


80 




45. 195 


30 


50, 817 


50 




41.755 


25 


41,827 


35 




41, 827 


35 


41,755 


25 


489. 495 


03 


489,495 


03 




7,696 


50 


7,696 


50 


481,798 


53 1 


481.798 


53 



Differences. 



236 

39, 014 
1,420 

13,000 
1,500 



10, 8«5 

1,640 

992 

662 

720 



2,215 

1,009 

10 



2,357 

1,916 
6,075 
5,000 



,655 



64 



25, 000 

25, 000 

2,079 



923 



8,000 
12,910 



1,000 
416 



41 

634 

2,950 



65 



25 



5,655 I 28 



Accounts Balanced ; 



5,187 
2,509 

7,696 



62 



THE EXPERTS ASSISTANT. 



PROOF OF TRIAL BALANCE BY DIFFERENCES, MARCH 30, 1890. 



Debit Side. 


Increase. 


Decrease. 


Credit Side. 


Increase. 


Decrease. 


Trial Bal. February.... 
Exchange Bk. Stock... 

Credit Sales for mo 

Cash Bal. Increase 

Bank Bal. Increase 

Freight for mo 


75,086 

1,000 

6,952 

72 

5,425 

674 

6S1 

10, 575 

6,075 


45 

CO 

80 
10 
58 
25 
30 
00 

00 






Trial Bal. February... 
Exchange Bk. Stock.. 
Credit Sales for mo... 

Cash Sales for mo 

Int. net reed, for mo.. 
Profit and Loss net 
reed, for mo 


75,086 

1,000 

6,952 

6,053 

125 

575 

10, 000 

5,500 


45 
00 
80 
40 
13 

00 

00 

00 






Expense for mo. 




Mdse. Co. B. Cost 

Shipment to Denver, 
Cost and Profit 


Swift & Co., Acct. 

Mdse. Co. B 

Bills Pay. Acct. Shipt. 

to D 




Tntnl Tnrrpncp 


106, 542 
17,887 


48 
20 


Total Increase 

Less Paymts., Accts., 
and Bills Payable... 

Trial Bal. should foot. 






105, 292 


78 




Less reed, on acct. and 
Bills Receivable 


16, en 


50 




Trial Bal. should foot.. 


88,655 


28 


88,655 


28 




Receipts. 
Bills Receivable. ... 






5,999 
2, 100 

450 
1,900 

700 
2,537 
1,700 
2,500 


70 
00 
00 
00 
00 
50 
00 
00 


Payments. 
Bills Payable 






9,625 
5,187 
1,825 


00 


H. Wilson & Co 


N. Y. Refining Co 

Sprague,W'ner & Co. 

Total Paym'ts for mo. 


50 
00 


W. H Johnson & Co... 

E. H.Taylor & Co 

Fisher & Kellogg 

P. H. Kelly & Co 

Donaldson & Co 


16,637 


50 












Real Estate 








Total Receipts for mo. 


17,887 


20 

















THE expert's assistant. 63 

In this illustration the debit side is increased by the difference or 
profit made on exchange of bank stock for real estate, including the 
amount previously received for dividend and credited to the bank 
stock, as it represents an increase in the assets to that extent. The 
balance of Merchandise account being on the credit side, and having 
been so for the previous month, the debit side is increased by the 
credit sales for the month, as they represent the increase of assets 
for the month by the amount of increase in personal accounts due 
the business. The balance of cash and in bank being greater than 
at the close of the former month, the debit side is increased by the 
difference. In this instance the consignor is credited with the full 
amount of his shipment in Merchandise Co. B, instead of our share, 
as before, and the shipment not having been closed out, it creates 
an apparent asset for its cost, both in cash and credit, and conse- 
quently increases the debit side. The shipment on joint account 
not having been entered into the Merchandise account, and having 
been charged in full for its cost, and account sales having been ren- 
dered the net gain to the consignee, it constitutes an asset, and, 
therefore, increases the debit side. 

The debit side is decreased, as before, taking into account the re- 
ceipt of cash on real estate, the same as on accounts and Bills Re- 
ceivable. The credit side is increased by the balance to the credit 
of bank stock, through the exchange for real estate and for the 
amount previously to its credit from dividend received. As it now 
shows an apparent liability, it is increased by the cash and credit 
sales of merchandise (the balance of that account being on the credit 
side for the previous and current month), as that account now shows 
an apparent liability ; by the net amount received on Interest and 
Profit and Loss, as before ; by the amount credited the consignee 
on account of shipment in Merchandise Co. B, as that becomes a 
liability, and by the liability created by the note given in settlement 
of the shipment on joint account, as that did not enter into the Mer- 
chandise account. 

In the foregoing illustrations, while they have been made as full, 
varied and explicit as possible, it has not been possible to provide 
for all contingencies that may arise; but by remembering tJiat every- 
thing that goes to increase the assets, real or apparent, increases the 



64 THE expert's assistant. 

debit side, and everytJdng that diminishes them decreases it; also,, 
that the credit side is increased by anything that increases the liabilities, 
real or apparent, and decreased by all that goes to dimiitish them. 

By applying the above rule no difficulty will be found in making 
out the proof, no matter how complex and varied the accounts 
may be. 

BALANCE SHEETS. 

In connection with the transactions given, a balance sheet has 
been prepared, showing the state of the business at the close. 

The closing entries have been omitted from the Ledger in order 
to avoid any confusion that might otherwise arise in regard to the 
trial balances and the methods used for proving the same. 

The form of balance sheet used is believed to be the best for the 
purpose, as it shows in a concise and condensed form the state of 
the business; the assets and liabilities and what they consist of; the 
profit and loss and the source of the same ; and each partner's net 
gain or loss and net capital invested in the business; is easily under- 
stood and explained. 

The ruling of the trial balance books generally used will usually 
answer the purpose in making it out; if not, it is an easy matter to 
rule a blank sheet to meet the requirements of the case. 



THE EXPERTS ASSISTANT. 



65 





















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66 THE expert's assistant. 

INVERSIONS OR TRANSPOSITIONS. 

A very common error in posting or copying from one book or 
sheet to another is the inversion or reversal of figures, which may 
be determined by the difference or amount of error, as shown by the 
trial balance or the footings. If in copying from one book or sheet 
to another, if an inversion has occurred the difference will always 
be 9 or a multiple of 9, whose sum, when added together, will be 9. 

If the difference should be 9, or any multiple up to 81, it shows 
that the first two, or right-hand, figures have been transposed. If 90 
to 810, the second and third; 900 to 8,100, the third and fourth, and 
so on. If the difference consists of three or more figures, in which 
the ones intervening between the outside side ones are 9 or 9s, and 
the outside ones, when added together, make 9, it would indicate, if 
there be one 9 intervening, that the first and third figures of some 
amount had been transposed. If two 9s, the first and fourth, etc. 
If there should be ciphers on the right of the difference, it would 
show that the transposition had occurred one place further to the 
left for each cipher. In order to determine the figures so transposed, 
ignore the intervening 9 or 9s. As for instance, 486 written 684, 
the difference being 198, ignoring the 9, we have 18 as the differ- 
ence between the outside figures transposed, and on reference to the 
appended table of possible transpositions, we find under 18 the 
sums 46 and 64, the figures transposed. In all cases of outside 
transposition the intervening figures will be 9 ; if any other figures 
intervene, even if their sum should be 9, it is not an outside trans- 
position. 

COMPOUND TRANSPOSITIONS. 

Compound transpositions are where there has been two transpo- 
sitions, either in the same amount or in different ones, but in dif- 
ferent denominations, as one in dollars, the other in cents, or one in 
thousands and hundreds, and the other in tens and units. 

They may be of two kinds: First, where both transpositions in- 
crease or diminish the original sum ; the other, where one increases 
and the other diminishes it. 

If they both increase or diminish the original sum, the difference 
will always show two sets of nines, that is, the two left hand-figures 



THE expert's assistant. 6/ 

will make 9 also; the two right-hand ones, the intervening figures 
(if any), will be ciphers, as 630,027 or 6,327. Taking no account of 
the ciphers, the two figures on the right and left respectively will 
show the difference in each inversion, and by reference to the table, 
all possible inversions with those figures will be found. If one in- 
version should increase and the other diminish the original amount, 
the difference will be a sum whose two right-hand figures, when 
added together, will be ten, and whose intervening ones (if any) will 
be 9s, and the sum of the whole a multiple of 9, and of the two left- 
hand ones eigJit. 

To determine the difference for the first transposition, deduct the 
two right-hand figures from 100, which will give the difference for 
the first transposition; for the second, increase the two left-hand 
figures by one for the difference of the second; as if the difference 
or error should be 26,919, deducting 19 from 100 gives 81 as the 
difference or error for the first inversion. The left-hand figure (26) 
increased by one (27), the difference for the second inversion. The 
table under these differences gives all the inversions possible. In 
case there should be two transpositions in the sum, where they are 
made partly in the same column, as one in the tens and units and 
one in the hundreds and tens, to determine by the difference what 
the difference for each transposition is, and thus know what to look 
for. The difference will, in such cases, always consist of three 
figures, not counting any ciphers that may be on the right, as they 
serve only to indicate the columns in which the transposition has 
been made. 

The rule is as follows, viz.: If they each increase or diminish the 
original sum, the difference will be made up of two amounts or dif- 
ferences, which, when added together, expressing one as tens and 
units and the other as hundreds and tens, will make the total differ- 
ence, as these amounts range from 9 to 81, as seen in the table. One 
can tell at a glance what they are; as, for example : \\\ f^8,io6 writ- 
ten \\\ 1=7,863, their difference is 243. It will be seen by the table 
that 18 written 180, and 63 are the only differences that will make 
that sum; therefore, 18 is the difference for the transposition be- 
tween the hundreds and tens, and 63 for that between the tens and 
units. Opposite those differences in the table will be found the sums 
42, 24 and 81,18. In cases where the middle figure is 9, it would 



68 THE expert's assistant. 

show that the difference for each transposition was the same, which 
will be shown by the outside figures; as if tife'^^.'SO/ be written 
H J|^7,8i4, the difference is 693, which shows that the sums trans- 
posed had each a difference of 63. If one of the transpositions in- 
creases and the other diminishes the original sum, the difference for 
each one will be found ; for the first, or that between the hundreds and 
tens, by adding the first two or right-hand figures together, and pre- 
fixing the one on the left. The second, or one between the tens and 
units, by subtracting the original difference from 1,000, and adding 
the two left-hand figures of the result together, rejecting the ten (if 
any) in both cases, and annexing the right-hand figure, which will 
give the difference in each case, except in cases where the sum of 
the difference is 18; in that event, the left-hand figure should be in- 
creased by one for the first difference, and the left-hand figure of the 
second obtained by adding the two left-hand figures diminished by 
one. Examples: |f 11^5,327 written |ff|=r4,8 14, their difference 
is 513; adding the two right-hand figures, 1-1-3=4; prefixing the left- 
hand figure gives 54 for the difference for the transposition between 
the hundreds and tens, 1,000 — 513^487; adding the two left-hand 
figures of this difference together, rejecting the ten of the result, 4-I- 
8=2, annexing the right-hand figure gives 27 as the difference for 
the second transposition between the tens and units. Or, in the sec- 
ond event, 4581=^7)^67 written ||||=8,344, whose difference, 477, 
being added together makes 1 8 ; therefore, the difference for the first 
transposition would be 7-j-7:=4; prefixing the left-hand figure 4 in- 
creased by 1^5, gives 54 as that difference. For the second 
transposition we have 1,000 — 477=523; adding the two left-hand 
figures gives 54-2=7, which diminished by 1=6, annexing the right- 
hand figure, gives 63 as the difference required. 

Reference to the table will give the possible transpositions with 
those differences. In all cases of transpositions the first or right-hand 
figure of the difference will indicate the number of possible transpo- 
sitions that can be made with that difference, and the first figure sub- 
tracted from 10 will give the first figure of the possible amounts that 
may be transposed to make the difference. Increasing the first 
figure by 1 1, until you have 9 for the right-hand figure, will, with 
their reversals, give all the possible combinations that can be trans- 
posed to make the difference; as, for instance, if the difference be 27 



THE EXPERT S ASSISTANT. 



69 



then it would show that there was seven possible combinations. 
Taking 7 from 10 gives 3 as the first figure; increasing by 1 1, gives 
14, 25, 36, 47, 58, 69, as the only figures that can be reversed to 
make that difference. 

The following table, prepared in accordance with the foregoing 
rule, gives all the possible combinations that may be transposed to 
make the differences, thus enabling you to see, at a glance, what 
figures to look for, without having to construct a table in each case : 

TABLE. 



If the difference is Q r 


10 
01 


21 
12 
20 
02 


32 
23 
31 
13 
30 
03 


43 
34 
42 
24 
41 
14 
40 
04 


54 
45 
53 
35 
52 
25 
51 
15 
50 
05 


% 

63 
36 
62 
26 
61 
16 
60 
06 


76 
67 
75 
57 
74 
47 
73 
37 
72 
27 
71 
17 
70 
07 


% 

86 
68 

I 

84 
48 

1 

82 
28 
81 
18 
80 
08 


98 




97 


If the difference is 27 >■ 


79 
96 


If the difference is 36 1 


69 
95 




59 
94 


If the difference is S4 .... 


49 
93 


If the difference is 63 I 


39 
92 




29 
91 


If the difference is8i | 


J9 
90 




09 



If the correct amount is the largest, the inverted figure will be 
found in the bottom row; if the least, in the top one. 

The above table contains all the transpositions possible to be made 
with any given difference, and requires no further explanation. 

MISPLACEMENTS. 

Another very common and troublesome error is that of misplace- 
ment of figures, — that is, setting them down one or two places either 
to the right or left of their proper position, and thus increasing or 
diminishing the original sum ; as, for instance, 27 set down or posted 
as 270 or 2,700, or vice versa, — an error that has heretofore been 
very difficult to determine, and then only by checking every item 
until found. 

The following rules, which are original with the author, and have 
never before been published, will enable anyone to determine the 
exact figures in full (not a part) that have been misplaced or moved 



'JO THE EXPERTS ASSISTANT. 

one or more places to the right or left, thus avoiding the tedious 
process of checking over all the various items making up the sum, 
as you have the amount in full, giving every figure, and not a part, 
leaving you to guess and search for the remainder, as the best 
method heretofore in use does. 

In misplacements, as in transpositions, the difference will always 
be 9 or a multiple of 9, with this difference, that in transpositions the 
sum of the difference will, when added together, always be 9, ex- 
cept as noted in cases of outside transposition, and then it holds 
good leaving out the intervening 9 as directed; but in misplace- 
ments the difference, when added together, will be 9 or a multiple 
of 9. If it should be 9, the chances are very strongly in favor of its 
being a transposition; but if it is a multiple, as 54, 63, etc., then it is 
certain that it is a misplacement, except in cases of compound trans- 
positions as illustrated. 

RULES. 

1. Divide the difference or error by 9, which will give the exact 
sum that has been misplaced or moved one place to the left, which 
will be the case if the original or correct amount is the least; if it is 
greater, annex a cipher, which will give the amount moved one 
place to the right. 

2. If the difference should consist of three or more figures, and 
it should prove that the result obtained by rule i is not the correct 
amount, then the error consists in moving the sum two places to 
the right or left. If the difference consists of three figures, subtract 
the first or right-hand figure from 10; the result will be the sum 
that has been moved two places to the left if the original amount 
was the least; if the largest, annex two ciphers for the correct 
amount. 

3. If the difference consists of four figures, subtract the first two 
or right-hand figures from 100; the result will show the sum moved 
two places to the left, annexing two ciphers if it has been moved to 
the right. 

4. If the difference consists of five figures, and the result ob- 
tained by rule i does not prove to be the correct one, then it must 
consist of a sum of three figures moved two places either to the 
right or left, unless the third figure from the right is a 9, in which 



THE expert's assistant. /I 

case a compound transposition may have been made instead of a 
misplacement. To determine the amount that has been misplaced 
set down the first two figures of the difference, add the first and 
third together, and place the unit of the result on the left of the first 
two, and subtract from i,ooo; the result will give the amount, con- 
sisting of three figures moved two places to the left, annexing ciphers 
if to the right. 

5. If the difference consists of six figures, set down the first two 
figures, add the first two and second two together, and place the first 
two figures of the result thus obtained on the left of the first two 
figures of the difference; subtract this amount from 10,000; the result 
will give the amount, consisting of four figures moved two places 
to the right or left. 

6. If the difference consists of seven figures, proceed as in the 
previous rule for the first four figures of the result, and prefix the 
left-hand figure of the difference for the fifth and total, unless the 
sum of the fifth and sixth figures of the difference is ten or more, in 
which case increase the left-hand figure by one. (The left-hand fig- 
ure is prefixed to the result after the first four figures are subtracted 
from 10,000.) 

7. If the difference consists of eight figures, proceed as in rule 5 
for the first four figures of the result, and prefix the two left-hand 
figures of the difference for the fifth and sixth figures and total 
amount misplaced or moved two places to the right or left. 

In all misplacements of two places the difference will be divisible 
by 99, and the quotient will be the sum misplaced. 

In all the foregoing rules, if the original sum is the largest, annex 
two ciphers to the result, which will then show the exact amount 
moved two places to the right. 

It sometimes happens that two or more misplacements may have 
occurred. If this should be the case, and they should all have 
been moved the same number of places in the same direction, the 
result obtained by the rules will be the sum of the amounts so mis- 
placed. 

In case that one amount has been moved to the left and another 
the same number of places to the right, the result will show the 
difference between the two, considering them as of the same de- 
nomination, i. e.y dollars or cents, as 24.26 written 26.24. The 



J 2 THE EXPERT S ASSISTANT. 

difference (1.98), by the rule for misplacements of two places, 
would give 2 as the difference between the sums transposed or 
misplaced, 26 — 24= 2. 

In cases of compound misplacements or transpositions, where 
one amount or figure has been moved two places to the right or 
left and the other one in the opposite direction (they usually occur 
in one amount), the difference will indicate a sum which represents 
the difference between the sum moved two places, taken as having 
been moved first one place and then two, and a sum consisting of 
two figures moved one place. If the difference increases the origi- 
nal sum, the left-hand figure of the correct sum will be less than the 
right, except when the difference is 81, when the left-hand figure 
will be one greater. The reverse will be the case if the difference 
diminishes the original amount. 

To find the correct amount divide the difference by 9. The quo- 
tient will give the difference between the sums moved, taken sepa- 
rately and considered as of the same denomination, as 256, written 
625; difference, 369 ; dividing by 9 = 41 ; 60 — 20 = 40; 6 — 5 ?= i ; 
40+ I =41 ; or, what is the same thing, ()6 — 25 ^41. Therefore, 
we have to look for a sum in which, if the original sum is increased, 
and the left-hand figure annexed to itself and diminished by the 
next two on its right, will make the difference indicated. If the 
original amount is diminished the process would be reversed; that 
is, if 625 was written 562, then we would have a difference of 
63-^9 = 7 — 62 — 55== 7. We would then have to look for a sum 
in which the left-hand figure annexed to itself and subtracted from 
the two on its right will equal the difference indicated. By transpos- 
ing the figure moved two places to the right or left, as the case may 
be, the correct amount will be found. If, in dividing the difference 
by 9, the result should give a sum whose figures are the same, as 66, 
it would show that the figures on the right or left, according as the 
original was increased or diminished, were the same, as 22, making, 
in effect, an outside transposition, which can be found by the rule 
for such cases. 

The foregoing rule will apply to all cases of transposition or mis- 
placement from right to left, or vice vcf^sa, by using the figure trans- 
posed as many times as it has been moved places to the right or 
left. 



THE EXPERT S ASSISTANT. 73 

In cases where the difference is 8i, proceed as before, /. r., 657 
written 576; difference, 8 1 -^ 9 = 9 ; 66 — 57 = 9. In such cases the 
correct sum will consist of an amount in which the outside ficfures 
will differ by I, the middle figure will be one greater than i, and two 
than the other, or less, according as the original amount has been 
increased or diminished. 

In general, it may be stated that, in all cases of misplacements, 
the number of figures in the difference will be one greater than in the 
sum moved one place, and two greater than in the sum moved two 
places, not considering the ciphers to be annexed in cases where it 
has been moved to the right, thus enabling the accountant to de- 
termine at once how many figures are in the sum so moved and 
apply the proper rule to ascertain the exact amount. 

In footing it frequently happens that owing to carelessness in 
setting down the various amounts, units are added as tens, or 
tens as hundreds instead of in their proper place. If such should 
be the case, the difference or error will be 9, or a multiple, as in 
inversions. If units have been taken as tens, the right-hand figure 
of the difference substracted from 10 will give the figure so footed, 
and the difference divided by 9 the sum in which it occurred. If 
tens are taken as hundreds, the first figure of the difference will be a 
cipher; the second subtracted from 10 will give the figure wrongly 
footed, and the difference divided by 9 will give the figure so footed, 
and all to its left, thus enabling you to locate the error without 
difficulty. The same process will give the figure and sum in which 
it is to be found, if the error be reversed, as tens added as units, etc. 

The following examples will serve to illustrate the foregoing 
rules and make them more easily understood. The first column 
represents the Cash Book, Journal, or other books from which post- 
ings may have been made to the Ledger. The adjoining columns 
represent the Ledger, the same amounts being posted to each, and 
a different error made in each one in order to illustrate the various 
inversions that may be made. Each example will be fully explained, 
showing how to find the error without having to check each item, 
it only being necessary to look for such figures as, being transposed, 
will make the error, which can be found by reference to the table 
or by the rule given in such cases : 



74 



THE EXPERT S ASSISTANT. 
TRANSPOSITIONS. 



Cash 


Bk. 




























OR 


Ledger. 


Ledger. 


Ledg 


ER. 


Ledg 


ER. 


Ledger. 


Ledger. 


Ledger. 


JOURN 


AL. 




























625 


15 


625 


15 


62s 


15 


625 


15 


625 


15 


625 


15 


625 


15 


625 


1,5 


437 


82 


^i'X 


82 


437 


82 


437 


82 


437 


82 


437 


82 


1,37 


82 


43 7 


38 


47 


25 


47 


0*^ 


47 


2S 


47 


25 


47 


25 


47 


25 


43 


7i> 


47 


25 


61 


00 


61 


00 


61 


00 


16 


00 


61 


00 


61 


00 


61 


00 


61 


00 


273 


76 


273 


76 


273 


76 


273 


76 


273 


76 


273 


76 


273 


76 


273 


76 


7 


64 


7 


64 


7 


64 


7 


64 


7 


64 


^ ^^ 


64 


7 


46 


7 


64 


1,624 


53 


1,624 


53 


1,624 


53 


1,624 


53 


1,624 


53 


6,134 


i)3 


1,624 


53 


1,624 


53 


84 


52 


84 


52 


84 


52 


84 


52 


84 


52 


84 


52 


84 


52 


84 


52 


60s 


20 


60s 


20 


6o,S 


20 


605 


20 


605 


20 


605 


20 


605 


20 


605 


20 


i«4 


00 


184 


00 


184 


00 


184 


00 


184 


00 


184 


00 


184 


00 


184 


00 




95 




95 




95 




95 




95 




95 




95 




95 


36 


04 


36 


04 


36 


04 


36 


04 


36 


04 


2,^ 


04 


36 


04 


36 


04 


254 


71 




71 


254 


71 


254 


71 


634 


17 


254 


71 


254 


71 


357 


41 


2,758 


16 


2,758 


16 


2, 758 


16 


2,758 


16 


2,758 


16 


3,758 


61 


2,758 


16 


2,758 


16 




«5 




H5 




«5 
30 




85 




85 




85 




85 




85 


3 


20 


3 


20 


3 


3 


20 


3 


20 


3 


20 


3 


20 


3 


20 


879 


00 


879 


00 


879 


00 


879 


00 


879 


00 


879 


00 


879 


00 


879 


00 


45 


61 


45 


61 


45 


61 


45 


61 


45 


61 


45 


61 


45 


61 


45 


61 


7,929 


39 


7.929 


66 


7,928 


49 


7,884 


39 


8,198 


85 


12,429 


84 


7,924 


71 


7,931 


55 






7,929 


39 


7,929 


39 


7,929 


39 


7,929 


39 


7,929 


39 


7,929 


39 


7,929 


39 


Error 






27 




-90 


-45 


00 


269 


46 


4,500 


45 


-4 


68 


2 


16 



Example i. The difference being. 27, would show that there had 
been a transposition in the cents column. The right-hand figure 
shows that there are seven possible inversions that would make the 
error; 7 subtracted from 10 gives 3 as the first. By referring to 
the table, or constructing one according to the rule, we see at a 
glance what they are, and have only to look for those figures. As 
the error has increased the original sum, it shows that the amount 
sought will be found in the top row of the table. On examination 
we find three sums that the cents reversed would make the error, 
viz., .85, 84.52 and 47.52. By referring to the original we find 
the first two have been posted correctly. The third, 47.52, we find 
should have been 47.25, which, being corrected, will give the cor- 
rect amount. 

Example 2. The difference being .90, would indicate that an in- 
version had been made between the dollars and cents column, and, 
as the original amount was the greatest, that the sum inverted 
would be found in the bottom row of the table. The ciphers on 
the right of the difference in cases of inversion only go to show in 
which columns the inversion has occurred; as, if there is one, it is 
between the second and third; if two, between the third and fourth, 
and so on. 



THE expert's assistant. 75 

In the example we find by the table that there are nine possible 
inversions. On examination we find 437.82, 1,624.53, 84.52, 
2.30 and 45.61, to be the only sums in which a transposition of 
the dollars and cents would make the difference. By referring to 
the original for these amounts, we find them all correctly posted 
until we reach 2.30, which should have been posted 3.20. 

Example 3. The difference (45.00) shows that a transposition 
of the units and tens of dollars has been made, and as the original 
sum has been decreased, the amount transposed will be found in 
the bottom row of the table. On examination we find 16.00 the 
only amount that being transposed would make the difference, and, 
on referring to the original, find 61.00 has been posted 16.00. 

Example 4. The difference (269.46) indicates that either a mis- 
placement or a compound transposition has been made. Applying 
the rule for misplacements, we find, that as the third figure is 9, it 
cannot be a misplacement of two places, but might be of one, which 
we find, if such had been made, would be 29.94 posted as 299.40. 
On examination, we find we have no such an amount. Therefore 
it must be a compound transposition. As the first two figures of 
the difference make 10 when added together, it shows that it is a 
compound transposition, where one increases and the other di- 
minishes the original sum. Deducting the two right-hand figures of 
the difference (46) from 100, gives 54 as the difference for the first 
or right-hand transposition; increasing the two left-hand figures 
(26) by I gives 27 as the difference for the second. On referring to 
the table under 54, we find 437.82 and 524.17 as the only amounts 
that the cents could be reversed to make that difference. In the 
same way, under 27, we find 524.17, as the only amount in which 
the tens and hundreds of dollars reversed would make the differ- 
ence (the 9 in the units place of the dollars shows that the trans- 
position has been made in the tens and hundreds), and, on exami- 
nation, we find 254.71 has been posted 524.17. If the transposi- 
tions had occurred in different items, we should have had to look 
for each transposition separately, as in this case the 17 would be 
found in one item and the 520.00 in another. 

Example 5. The difference (4,500.45) shows that either a mis- 
placement or a compound transposition has been made. We find 
by the rules that the only misplacement that could be made with 



76 THE expert's assistant. 

this difference is 500.05, posted 5,000.50, and as we have no 
such an amount, it must be a compound transposition, in which the 
original sum is increased in both cases. The first two figures on 
the right indicate that a transposition has been made in the cents 
column, whose difference is 45, and as there are two ciphers inter- 
vening, one in the hundreds and thousands of dollars, whose differ- 
ence is also 45; on reference to the table we find 45.61 and 
2,758.61 as the only sums whose cents being transposed would 
make the difference. On examination of these amounts we find that 
2,758.61 should have been posted 2,758.16. In the same manner 
in the hundreds and thousands of dollars we find 6,124.53 ^^^ 
2,758.61 as the amounts in which a transposition of the dollars 
would make the difference, and, on referring to the original, find 
1,624.53 posted as 6,124.53. Making the proper correction in 
each case the accounts will balance. 

Example 6. In this example the difference (4.68) would indicate 
a misplacement, which, as the original sum is decreased, we find 
would be 5.20 written .52. On examination we find we have not 
that amount in the original. We must, therefore, look for some 
other error. There being three figures in the difference, would also 
indicate that there had been two transpositions. On applying the 
rule for such cases, we find .45 written 4.50, and .18 added together 
will make the difference; and, on looking for transpositions whose 
differences are 45 and 18, find that 47.25 has been posted 42.75, 
and that 7.64 has been posted 7.46. 

Example 7. In this example a misplacement of .24, written 2.40, 
would make the difference (2.16); but not having that amount, look 
further; .18 written 1.80, and .36, would also make the difference. 
On examination we find that there is no sum in which a transposi- 
tion between the tens of the cents and units of the dollars is possible 
with a difference of 18; therefore, we conclude that it must be a case 
where one transposition increases and the other diminishes the origi- 
nal sum, and made partly in the same column; and, as in this case 
the total is increased, the one increasing must be between the 
units of dollars and tens of cents, and the one diminishing in the 
cents column. Applying the rule to ascertain the differences, we 
have, adding the two right-hand figures together, 14-6=7. Prefix- 
ing the left-hand one (2), gives 27 as the difference for the first trans- 



THE EXPERTS ASSISTANT. yj 

position between the units of dollars and tens of cents. For the sec- 
ond difference we have lo.oo — 2. 16:^=7.84; adding the two left-hand 
figures together, rejecting the 10, we have 7+8=5; annexing the 
right-hand figure (4) gives 54, the difference required; and, on ex- 
amination, we find 254.71 posted 257.41; difference, 2.70; or, what 
is the same, 27, as the cipher only indicates that the transposition 
has been made between the tens and hundreds. We also find that 
Af^7.'^2 has been posted ^i'j.2Z, with a difference of .54. 



78 



THE EXPERTS ASSISTANT. 





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THE EXPERTS ASSISTANT. 79 

Example i. The difference (4.95) may be made in several ways. 
First — By the transposition of the outside figures of some number 
consisting of three figures, whose difference, when transposed, would 
be 45. On examination we find that there is no sum which, being 
transposed, would make the difference. Second — A misplacement 
of some amount moved two places to the right, as the original sum 
is the largest. Applying the rule for such cases, we have 
i.oo — .95 =1.05. Annexing two ciphers gives 5.00 as the sum 
which, if posted .05, would make the difference. As we do not find 
that amount, it must be some amount moved one place to the right; 
4.95 -^9 = .5 5, which on examination we find should have been 
posted 5.50. 

Example 2. On applying the rule for a misplacement of two 
places, we find it could not be made with the given difference (16.56). 
On dividing it by 9, we have 1.84, and, as the original sum is the 
least, shows that 1.84 has been posted as 18.40, which, on examina- 
tion, proves to be correct 

Example 3. On applying the rule for a misplacement of one 
place, by dividing the difference by 9, we have 8.25, which, as the 
original sum is the least, would show that 8.25 had been posted as 
82.50. But, as we do not find that amount, it must be a misplace 
ment of two places to the left. By the rule we have, subtracting the 
first two figures of the difference from i.oo — .25 = .75, which we find 
to have been posted 75.00. 

Example 4. In this example we find that a misplacement of one 
place of 35.75, posted as 357.50, would make the difference of 
321.75. But, as we do not find such an amount, it must be one of 
two places. To determine the amount so misplaced by the rule, we 
have, setting down the first two figures of the difference (75), and 
adding the first and third together, i +5 = 6, and placing it on the 
left of the first two = 6.75, which being subtracted from 10.00 gives 
3.25, which we find should have been posted 325.00. 

Example 5. In this example the difference (4,5 1 5.39) would indi- 
cate that a misplacement of either one or two places had been made. 
On applying the rule for one place we have 501.71 as the amount 
which, if moved one place to the left, would make the difference. 
As we do not find that amount, it must be one of two places. 
Applying the rule to determine the amount of such misplacement, 



80 THE expert's ASSISTANT. 

and setting down the first two figures of the difference (39), and add- 
ing the first two figures and the second two together we have 
39-1-15 = 54, which, placed on the left of the first two and sub- 
tracted from 100.00 — 54.39 = 45.61, which we find, on examination, 
has been posted 4,561.00. 

Example 6. On applying the rule for a misplacement of one 
place in this example, we have 2,801.81 a? the amount which would, 
if so misplaced, make the difference (25,216.29). Not having such 
an amount we know it must be one of two places, which we proceed 
to determine by the rule. Setting down the first two figures of the 
difference (29) and adding the first two figures and the second two 
together, 29 + 16 = 45, which, being placed on the left of the first 
two, gives 45.29, which, being subtracted from 100.00 = 54.71 ; and as 
the sum of the fifth and sixth are less than ten, we place the left- 
hand figure of the difference on the left of this amount for the total 
of the sum misplaced := 254.71, which we find has been posted 
25,471.00. 

Example 7. In this example we find that 30,636.76, if moved 
one place to the left, would make the difference (275,730.84); but not 
having that amount must look for one of two places. Proceeding as 
in the previous example, setting down the first two figures (84) and 
adding the first two and second two, 84-1-30= 1 14, and placing the 
first two figures of this result on their left gives 14.84, v/hich, being 
subtracted from 100.00=85.16; prefixing the two left-hand figures 
of the difference to this sum gives 2,785,16, which we find has been 
posted 278,516.00. 

Example 8. In this example we find, on applying the rule for a 
misplacement of one place, we have 160.82 as the sum which would 
make the difference (1,447.38) if carried one place to the left, and 
as we do not find either that amount or any whose sum would be 
equal to it, we proceed to look for one of two places, which we find 
would be 14.62, posted as 1,462.00. Not finding that amount, we 
then look for two or more amounts whose sum would be 1,462.00. 
On examination we find 864.00 and 598.00 as the only ones whose 
sum equals that amount, and that they should have been posted 
8.64 and 5.98, respectively. 

Example 9. The difference in this example (1.80) would indicate 
that it was either a transposition between the dollars and cents 



I 



THE expert's assistant. 8 1 

columns, a misplacement, or an error in footing by adding the tens 
of cents in the units of dollars. On looking for a transposition we 
find, as the original is the least, that there is no amount which 
could be transposed to make it. We als.o find that .20 posted as 
2.00 would make the difference. But not finding such an amount, 
and there being no sum which could be moved two places to the 
left that would make it, we then look for an error in footing, which 
we find by the rule would be 2 in the tens of cents column footed 
as 2 in the units of dollars. On examination we find that such is 
not the case. We therefore, as a last resort, must look for a mis- 
placement in which one amount has been moved to the right and 
one to the left. As there is no amount which, being moved two 
places, would make the difference, it must be of one place. 
Applying the rule for a misplacement of one place, we have 
1 80 -^ 9 := 20, which shows that some amounts whose difference is 
20 when considered as of the same denomination, have been moved, 
one to the right and one to the left. On examination we find that .55 
and 7.50 are the only ones whose difference is 20, i. ^.,75 — 55 ^ 20, 
and on reference to the original entries find that they should have 
been posted 5.50 and .75. 

Example 10. The difference in this example (360.00) would in- 
dicate that either a misplacement, transposition or an error in foot- 
ing had occurred. If a misplacement, 40.00 posted as 400.00 would 
make it. Not having that amount, we look for a transposition 
between the tens and hundreds of dollars, and, on examination, fail 
to find any amount which could be so transposed. We must, there- 
fore, look for some figure that has been footed in the hundreds of 
dollars instead of the tens. Deducting the first figure of the differ- 
ence (not counting the cipher on the right) from 10 gives 10 — 6 = 4 
as the figure so footed, and on examination we find that, owing to 
carelessness in posting, 47.25 has been footed as 407.25. 

In this connection, and in order to more fully illustrate the almost 
marvelous powers of the nines, the following rules for finding the 
amount of the error, when the sum has been moved one place to 
the right or left, in addition to the one previously given, are ap- 
pended: 



82 THE expert's ASSISTANT. 

RULES. 

1. If the difference consists of three figures, set down the first or 
right-hand figure, add the first and second together, and place the 
unit of the result on the left of the first. Subtract the sum thus ob- 
tained from lOO and the result will show the amount that has been 
moved one place to the left if the difference shows that the original 
or correct sum is the least. If the difference shows that it is greater, 
place a cipher on the right of the result. It will then show the 
amount that has been moved one place to the right. 

2. If the difference consists of four figures, proceed as before for 
the first two figures of the subtrahend. For the third add the first 
three figures together, carrying one. If the sum of the first two was 
lO or more, set down the unit of the sum thus obtained on their 
left and subtract from i,ooo for the desired amount, annexing a 
cipher if the difference is less than the correct sum. 

3. If the difference consists of five figures, proceed as before for 
the first three figures of the subtrahend. For the fourth, add the 
first four figures together, carrying I if the sum of the first three is 
10 or more, 2 if 20 or more, and place the unit of the result on the 
left and subtract from 10,000. Proceed in like manner for any num- 
ber of figures in the difference, remembering to set down only the 
unit of each addition, and to carry I to the next for each 10 in the 
previous results. 

As before noted, the difference, where the sum has been* moved 
one place, will always contain one more figure than the original 
sum moved to the left, and the same number if moved to the right. 



Example i. 

2567 2567 Set down first figure of difference 8 

52 520 

5276 5276 Add first two together, 8+6=14, placing unit on 

728 728 the left, equals 48 

827 827 

9450 9918 

9450 Subtracting from 100 



Difference, 468 The sum misplaced 52 



4728 


4728 


8247 


8247 


384 


3840 


1927 


1927 


256 


256 


15542 


18998 




15542 


Difference, 


3456 



15038 
7406 

34971 
894 

6708 
65017 



15038 

74060 

34971 

894 

6708 

I3I67I 
65017 



Difference, 66654 



THE expert's assistant. 83 
Example 2. 

Set down first figure of difference 6 

Add first two, 5-4-6=11, placing unit on left, equals 16 

Add first three, 4+5+6+1, carrying i, equals 16 

Placing unit on left, equals -., 616 

Subtracting from 1000 

The sum misplaced 384 

Example 3. 

Set down first figure of difference 4 

Add first two, 5+4, unit on left, equals 94 

Adding first three, 6+5+4, unit on left, equals 594 

Adding first four, 6+6+5+4 + T, carrying i, plac- 
ing unit on the left 2594 

Subtracting from loooo 

The sum misplaced 7406 



DROPPED FIGURES. 

It frequently happens that in transferring figures from one sheet 
or book to another a figure is dropped or omitted from some 
one of the amounts, or that, owing to carelessness in setting down 
the sum, in footing, some figure is omitted or footed in the wrong 
place, as units with tens, or vice versa. The error thus occasioned 
has heretofore been very difficult to determine, except by the tedious 
process of checking all the various items going to make up the sum 
or account, as the difference, except when a 9 or o has dropped, 
does not indicate an inversion or misplacement, which it to a certain 
extent is ; that is, it moves all the figures to the left of the one dropped 
one place to the right. The difference or error will always be less 
than the original or correct amount. The following rule, original, 
and never before published, will enable anyone to determine, not 
only the exact figure that has been dropped, but its exact position 
in the sum from which it has been dropped ; i.e., units, tens, hundreds 



84 THE expert's assistant. 

or thousands, also, all the figures (if any) to its left. Thus giving, if 
the dropped figure should be the unit, the exact amount to be looked 
for, and in any case the dropped figure and all to its left. 

RULES. 

The position of the dropped figure is determined by the number 
of ciphers on the right of the difference. If there are none, the unit 
has been dropped; if one, it is in the tens, if two, in the hundreds, 
and so on. 

To determine the exact figure and those on its left, divide the dif- 
ference (omitting the ciphers, if any on the right) by 9, and to the 
result annex the remainder, which will give the exact su?n, including 
the dropped figure to the left of the ciphers, the remainder being 
the figure dropped. If there are no ciphers in the difference, the re- 
sult will be the sum in full. In all cases where a 9 or a o has been 
dropped, the difference, when divided, will have no remainder. If 9 
has been dropped, the figure to the left of the remainder, which will 
be a o, will be one greater than the correct one ; by deducting I 
from that figure and annexing 9, the correct result will be obtained. 
If a o has been dropped, the result will be correct by annexing a o 
to the quotient. 

The following examples are given to illustrate the rule : 

Example i. 

37,856 
3,785 

9) 34,071 

3,785-6 remainder, the figure dropped. 
There being no ciphers on the right of the difference indicates that the unit 
has been dropped; annexing it, we have 37,856, the correct amount. 

Example 2. 

37,856 
3,786 

9)3,407 (0 

378-5 
There being one cipher on the right of the difference shows that a figure in 
the tens has been dropped. Annexing the remainder (5) to the quotient, we 
have 3,785, the figure dropped, and all to its left. In the same manner, if there 
should be two ciphers on the right of the difference, the result will give the 
dropped figure and all to its left. 



THE expert's assistant. 85 

The following examples will illustrate the dropping of a 9 or o: 

Example i. 

42,569 
4,256 



9)38,31: 



4,257 
Deducting 1^4,256, annexing 9 = 42,569, the correct amount. 

Example 2. 

382,507 

38,257 

9)34,425(0 

3,825 
Annexing a cipher gives 38,250 as the figure dropped and all to its left. 

In cases where, in footing, a figure has been omitted in the 
footing, but is set down correctly in the sum, the difference will con- 
sist of one figure in the place from which it was omitted, i. c.^ units 
or tens, and will be the figure so omitted ; the ciphers on the right 
indicating its position in the sum; but, as often occurs in setting 
down an amount in a long column of figures, a sum may be so 
placed that one figure is omitted and the others footed in the wrong 
position, as hundreds with tens, the sum from which it is omitted 
and misfooted can be determined by the rule for dropped figures, 
if the figures to the left of the one dropped are footed in the columns 
to the right of their proper position. If, however, the figures to the 
left of the one dropped should be so placed that they are footed in 
the columns to the left of their proper position, then, to determine 
the correct sum and the figure dropped, divide the difference by 9; 
the result will be a sum terminating in 9 (except when the dropped 
figure is a o, in which case it becomes a misplacement and the ter- 
minal o), and a remainder, unless the figure dropped is 9 ; if that 
should be the case there will be no remainder. By dropping the 
terminal 9, and increasing the figure to its left by I, the correct 
figures to the left of the one dropped will be found, and subtracting 
the remainder found by the division from 9, will give the figure 
dropped. 



86 THE expert's assistant. 



Example 


7. 


278 5 
564 

23 46 
82 5 


Dropping the 4. 


6,520 
6,480 


Correct footing. 
Footing made in error. 


40=4 the figure dropped. 


Example 


2. 


278 5 
56 4 
2346 
82 5 





6,520 Correct footing. 

4,410 Footing made in error. 



9)211(0 



23-4=234, the sum including the dropped 
figure, and all to its left in which the error is made. 

Example 3. 

27 85 

5 64 

23 4 6 

8 25 

27, 180 Footing made in error. 

6,520 Correct footing. 

9) 2,066(0) (229-5. 
Dropping the 9, and increasing the figure to its left by 1=23; for the fig- 
ures to the left of the one dropped, 9 — 5=4, the dropped figure; 234, the sum 
from which it was dropped. 



ExaTfiple 4. 


48 75 


3 9 7 


29 45 


6 21 



11,448 Footing made in error. 
8,838 Correct footing. 

9) 26 1(0) (29-0. 
Dropping the 9 and increasing the figure to its left by 1^3; for the fig- 
ure to the left of the one dropped, 9 — 0=9, the dropped figure; 39, the sum 
from which it was dropped and the misplacement to the left made. 



THE expert's assistant. 8/ 

In case two figures have been dropped or omitted from any sum, 
and they adjoin each other, the first, or right-hand figure dropped 
will be the one to the left of the ciphers on the right(if any) in the dif- 
ference. To ascertain what are the dropped figures and those to their 
left, divide the difference (omitting the ciphers) by 99 ; the quotient 
will be the figures to the left of the ones dropped, and the remainder 
will be the dropped figures, which, being annexed to the quotient, 
will give the full sum, except as to the figures on the right of those 
dropped. 

Example. 

374,563 
3,743 Dropping the 5 and 6 gives a dif- 
ference, which, divided by 99)37jo82(o)(=374-56=37,456, the full sum, 
except the right-hand figure; if the two right-hand be dropped, the result will 
be the sum in full. 

In cases where two figures have been dropped, but not adjoining 
each other, the full sum can be found, except as to the figures to the 
right of the first or right-hand figure dropped. It is not claimed 
that this method, where two figures, not adjoining, have been 
dropped, will be of much practical value, as there is no means of 
determining the position in the sum of the left-hand figure dropped, 
but that being known, the rest can readily be found. The rules for 
obtaining this result are appended, more as a mathematical curiosity 
and source of amusement than from any hope of its being of any prac- 
tical value in the detection of errors. The only rule for determining 
what figure had been dropped from any sum, heretofore published, 
only enabled you to say what the dropped figure was, but did not 
determine its position in the sum, or give any of the other figures 
composing the sum from which it was dropped, and therefore was 
of no practical value in the detection of errors arising from that 
source, and only applied to one figure. No attempt, so far as known, 
has ever been made to determine what the figures were, when more 
than one had been dropped, heretofore; still less to determine the 
exact sum from which it has been dropped, to the left of and includ- 
ing the right-hand figure dropped. 



88 THE expert's assistant. 

RULE. 

The first or right-hand figure will be indicated as before; there- 
fore, it will be necessary that you should be informed as to the posi- 
tion in the sum of the left-hand figure dropped, in addition to the 
difference. 

I. If there be an interval of one figure between the figures 
dropped, divide the difference (rejecting the ciphers on its right) 
by 99, until you have found the left-hand figure dropped, which will 
be the right-hand figure of the quotient. The remainder, if 
of two figures when added together, will be the sum of the figures 
dropped. Deducting the one found will give the other, or right- 
hand figure. Place this on the right of the sum obtained by the 
division, leaving an interval for the remaining figure. From this 
figure (adding lo, if necessary) subtract the right-hand figure of the 
difference. Place the result in the interval and you will have the 
complete sum except as to any figures to the right of the second or 
right-hand figure dropped. 

Example. 

384,765 Dropping 4 and 6 
3,875 



Difference divided by 99)380, 89(0) (384-73. 7 + 3 = 10 — 4=6, the sec- 

ond or right-hand figure dropped. Placing it on the right of the quotient, 
leaving an interval of one place =384 6; deducting the right-hand figure of 
the difference from this figure, increased by 10=16 — 9 = 7, for the remaining 
figure, which, being placed in the interval, gives 38,476 -f the desired sum 
except the right-hand figure. 

2. If there should be an interval of two figures, proceed in the 
same manner until the first figure has been found, which you will 
know by having been previously informed either of its position in 
the Slim or of the number of places intervening. If the sum of the 
remainder exceeds 18, deduct 9; the result will be the sum of the 
dropped figures. Deducting the first as before will give the other. 
Placing it on the right of the quotient, leaving an interval of two 
places, from the second or right-hand figure dropped, adding 10, 
if necessary. Subtract the first figure of the difference for the right- 
hand figure of the interval, from this figure, carrying as in ordinary 
subtraction. Deduct the second figure of the difference for the 
remaining figure. 



THE expert's assistant. 89 

Example. 

347,865 
3,785 

34, 408(0) (34 — 748 = 19 — 9= 10 — 4 = 6, the 
second figure dropped; placing it on the right of the quotient, leaving an 
interval of two places =34 6 ; subtracting the first figure of the difference, as 
before, we have 16 — 8^8 as the right-hand figure of the interval ; subtracting 
from this figure the second figure of the difference (o), carrying i, 8 — 1=7 
for the second figure of the interval; placing them in their proper place, gives 
the sum from which the figures were dropped, 34,786. 

3. If there should be an interval of three figures, proceed as 
before until the first figure is found. If the remainder, which will 
consist of four figures, contains a cipher and their sum exceeds 9, 
deduct 9 for the sum of the dropped figures. If the first three or 
right-hand figures of the remainder equal 9, the left-hand figure will 
be the sum of the dropped figures. If the sum of the remainder be 
less than 18 and the sum of the first three is less than 9, it will be 
the sum of the dropped figures. If the sum is 18 or more, deduct 
9; if 27, deduct 18, proceeding as before to fill the first two places. 
Place the left-hand figure of the difference in the third place. 

Example. 

835,674 
8,567 



99)827,107(83 — 5,407 = 16 — 9 = 7 — 3 = 4, the 
second figure dropped; filling the interval gives the full sum, 835,674. 

If the interval between the dropped figures is four places, the 
remainder will contain five figures. If their sum exceeds 18 and 
there is a cipher in the remainder, deduct 9 for the sum of the 
dropped figures. If there should be two ciphers, the sum of the 
remainder will be the sum of the dropped figures unless it exceeds 
18, in which, case deduct 9. If the sum of the first four figures of 
the remainder is 9, the left-hand figure will be the sum of the 
dropped figures. If the remainder contains no ciphers and its sum 
exceeds 18, deduct 18; if 27 or more, deduct 27, filling the intervals 
for three places by subtracting the difference, as in Example I. 
Place the left-hand figure of difference in fourth place, unless the one 
to its right be a 9; if so, increase it by i. 



90 THE expert's ASSISTANT. 

Examples. 

385,647 
8,564 



99)377,083(3—80,083 = 19—9=10—3=7, the 
second figure. 

384,765 
8,476 

99)376, 289(3 — 79, 289 = 35 — 27 = 8 - 3 = 5, the 
second figure dropped. On the same principle the sum can be found for any 
number of intervals. 

STOCK COMPANIES. 

The tendency nowadays seems to be toward the formation of stock 
companies for the conduct of all kinds of large business operations, 
as it affords better facilities for conducting and settling the same, as 
it avoids all the complications and settlements which attend or fol- 
low the withdrawal or death of a partner. As the duties of the ac- 
tive members or officers are usually fully defined, either in the arti- 
cles of incorporation or by-laws, there is, or need be, no conflict or 
clash in conducting the business, as each officer has his own spe- 
cific duty to perform and is accountable for the same ; the general 
policy and management being usually vested in a board of direc- 
tors and its president. 

In case one of the stockholders desires to withdraw or dies, it does 
not involve a settlement or winding up of the whole business to as- 
certain or settle his interest, as his stock represents that, and may 
pass from one person to another without affecting in any manner 
the business of the company, which only dies by limitation, insolv- 
ency, or by a majority vote of the stockholders to wind up its affairs. 

The laws governing the formation, conduct of and liabilities of 
stock companies vary in the different states, and should be con- 
sulted before forming such companies, in order to comply with their 
requirements. 

When it has been determined to organize a stock company for 
any purpose, the first step necessary is to draw up articles of incor- 
poration, defining the purpose and objects for which such company 
is formed and such other matters as may be required by the laws of 
the state in which it is formed ; also, specifying such other things 



THE EXPERTS ASSISTANT. 9 1 

as the incorporators may deem necessary, such as the capital stock, 
the number and value of the shares, the terms and manner of paying 
for the same, duration of the company, officers for conducting the busi- 
ness and defining their duties, and providing for the adoption of by- 
laws for the government of the company and its officials, etc., which 
should be filed for record and authority to do business with the 
officer provided by law — usually the secretary of state. 

Stock companies may be organized in several ways. First — With 
the full amount of the capital stock paid in full before commencing 
business. Second — With the stock to be paid for in installments at 
certain specified times. Third — The stock to be paid for by assess- 
ments made from time to time, as may be required to conduct the 
business. Fourth — With a specified amount or percentage of the 
nominal capital paid in, for which certificates of stock at their par 
value are issued. 

STOCK BOOKS. 

In forming or organizing stock companies, either for a general or 
specific purpose, in which it is intended to dispose of the stock to 
all who may wish to invest in the enterprise, the first book neces- 
sary is a Stock Subscription Book, which should contain a heading 
setting forth the name and purpose of the company, the amount of 
the capital stock, the number of shares and their par value, the con- 
ditions and terms of the subscriptions, and an agreement that the 
subscribers will take the number of shares set opposite their names 
and comply with all the conditions of the sale of the stock. 

The other books required, in addition to the ordinary books used 
in the transaction of the business, are a Stock Ledger, Journal and 
Cash Book. On the Journal an entry should be made debiting 
each person with the number of shares for which he has subscribed 
and value of the same at the par value, and giving Capital Stock 
credit for the total. If the stock is paid in full, an entry should be 
made on the Stock Cash Book, giving Stock credit for the same, 
and one debiting the company in its corporate name for the same. 

In case of companies where assessments are levied, each person 
should be charged with number of shares and par value of their 
subscriptions, and Capital Stock credited as before. When an as- 
sessment is levied, each person should be debited with the amount 



92 THE EXPERT S ASSISTANT. 

of such assessment, and Stock account credited; and, when paid^ 
each person should be credited with the amount on the Stock Cash 
Book, and the company debited with the same. 

In cases where the capital stock is sold or issued at a specified 
amount or percentage, each subscriber should be debited as be- 
fore, and Capital Stock credited. They should also be debited 
with the actual value or amount to be paid for such stock, and the 
same credited to Stock account, payments to be treated as in the other 
cases. When a stockholder desires to transfer his stock, or any 
portion thereof, he should be credited on the Stock Journal with 
the number of shares so transferred and the amount of the same at 
its par value, and the purchaser debited with the same. 

In case the capital stock is increased, it should be treated in the 
same manner as the original issue. 

The Capital Stock account will always show the amount of the 
subscribed capital, and the individual accounts the number of 
shares and amount held by each person. 

The illustrations will show the mode of procedure in each case. 

The General Ledger contains all matter appertaining to the gen- 
eral business of the company, the assets and liabilities, and all trans- 
actions, as in any ordinary business, and is kept independent of the 
Stock Ledger. 

The General Ledger should be opened by crediting Stock ac- 
count with the amount of the paid capital on the General Cash 
Book. If the stock should be paid for in merchandise, real estate 
or other property, the amounts so paid should be debited to their 
accounts instead of cash. 



a 



THE EXPERTS ASSISTANT. 



93 



ILLUSTRATION 



CAPITAL STOCK FULLY PAID UP. 



STOCK SUBSCRIPTION BOOK. 



The St. Paul Investment Company, having beefi organized for the trans- 
actio7i of a General Busi?tess, with a paid tip capital of $1^0^000^ in 
Shares of $100 each, we, the undersigned, hereby agree to take and pay 
for the number of Shares, in Cash, set opposite our names. 



Date. 



1890 

Jan...i 



Names. 



A. K. Marshall. 

B. K. Marshall 
H. P. Upham... 
Gustav Willius . 

J- J. Hill 

Thos. F. Oakes 



No. OF 
Shares. 



150 
250 
250 
250 
300 
300 



[5,000 



Amount. 



15,000 
25,000 
25,000 
25,000 
30,000 
30,000 



150,000 



00 
00 
00 
00 
00 
00 



The Journal entry would be: 



1890 
Jan ... 



Sundries Dr. to Capital Stock... 

A. K. Marshall, for 150 Shares... 

B. K. Marshall, for 250 Shares... 
H. P. Upham, for 250 Shares.... 
Gustav Willius, for 250 Shares. . 

J. J. Hill, for 300 Shares 

Thos. F. Oakes, for 300 .Shares. 







150,000 


15,000 


00 


25,000 


00 




25,000 


00 




25,000 


00 




30,000 


00 




30,000 


00 





94 



THE EXPERTS ASSISTANT. 



en 

B 



U 

u 

o 

in 



O 




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00 rt 






U Si2 



P > 

f^ to 

X o 



THE EXPERTS ASSISTANT. 



95 



ILLUSTRATION 



2.— CAPITAL STOCK TO BE 
MENTS, AS REQUIRED. 



PAID IN ASSESS- 



STOCK SUBSCRIPTION BOOK. 

The Good Luck Mining and Milling Company having been organized for the 
purpose of buyiftg, selling, operating and developing tnines, and erecting 
and operating mills for the reductiofi of minerals, the purchase and sale of 
ores, the purchase atid sale of real estate, and the transaction of such other 
business as may be necessary, with a subscribed capital of $1,000,000, in 
shares of $100 each, to be paid for i^t installments, as required, after the 
first, which shall be 25 per cent, payable within 30 days from the date of 
the subscription, we, the undersigned, hereby agree to take and pay for the 
number of shares set opposite our names, on the terms and conditions above 
set forth : 



Date. 



1890 
Jan. 



Names. 



David Moffat 

H. A. W. Tabor 

C. N. Wood 

Dennis Ryan 

A. H. Jones 

C.J. Berlin 



No. OF 
Shares. 



2,000 
2,000 
1,500 
2,000 
1,500 
1. 000 



Amount. 



200,000 
200,000 
150,000 
200,000 
150,000 
100,000 



1.000,000 



00 
00 
00 
00 
00 
00 



The entries in the Stock Journal would be as follows: 

St. Paul, Jan. 2, 1890. 



Sundries Dr. to Capital Stock 

David Moffat, for 2,000 Shares j 200,000 

H. A. W. Tabor, for 2,000 Shares | 200,000 

C. N. Wood, for 1,500 Shares 1 150,000 

Dennis Ryan, for 2,000 Shares j 200,000 

A. H. Jones, for 1,500 Shares | 150,000 

C.J. Berhn, 1,000 Shares 100,000 



Sundries Dr. to Stock 

David Moffat, for Assessment No i, 25% on 2,000 Shares... 
H. A. W. Tabor, for Assessment No. i, 25% on 2,000 Shares. 

C. N. Wood, for Assessment No. i, 25% on 1,500 Shares 

Dennis Ryan, for Assessment No. i, 25% on 2,000 Shares... 

A. H. Jones, for Assessment No. i, 25% on 1,500 Shares 

C.J. Berlin, for Assessment No. i, 25% on 1,000 Shares ' 25,000 



50,000 
50, 000 
37. 500 
50, 000 
37. 500 



96 



THE EXPERTS ASSISTANT. 



The entries on the Stock Cash Book, when the assessments are 
paid in, would be : 



Cash. 



Cash. 



Dr. 














Cr 






1890 
Jan. 


2 


To D. Moffat, for Assess- 
ment No. I 


50, 000 

50, 000 

37, 500 
50, 000 

37,500 

25, 000 


00 

00 

00 
00 

00 

00 


1890 
Jan. 


2 


By Goodluck M. & M. Co. 
for amount received on 
Assessment No. i. ........ 


1 

250, 000 






To H. A. W. Tabor, for 
Assessment No. i 

To C. N. Wood, for As- 
sessment No i 


00- 




To D.Ryan, for Ass. No. I 
To A. H.Jones, for As- 
sessment No. I 

To C.J. Berlin, for Assess- 
ment No. I 












250, 000 


00 


250, 000 


CO 



ILLUSTRATION 3.- 



-CAPITAL STOCK SOLD 
OF ITS PURCHASE. 



FOR A PERCENTAGE 



STOCK SUBSCRIPTION BOOK. 

The Maverick Land and Cattle Company^ with a Capital Stock of the par value 
of $1,000^000, in Shares of $100 each, to be disposed of to the subscribers at 
fifty per cent of their par value in cash, has been organized for the pur- 
pose of buying, selling and raising Cattle; buying and selling Land, and 
transacting such other business as may be necessary. We, the undersigned, 
hereby agree to take and pay for the number of Shares set opposite our 
names, on the terms and conditions above set forth. 



Date. 


Names. 


No. OF 
Shares. 


Amount. 


1890 

Jan. 


2 


A. V. Head 


2,500 
2.500» 
1,000 
2,000 
2,000 


250,000 
250,000 
1 00, ( 00 
200,000 
200,000 


00 


S T Hauser 


00 




T. A. Marshall 


00 




H A. True 


00 




P. H. Kelly 


00 










10,000 


1,000,000 


00 



THE EXPERTS ASSISTANT. 

The Journal entries would be: 

St. Paul, Jan. 2, 1890. 



97 



Sundries Dr. to Capital Stock 

A. V. Head, for subscription for 2,500 Shares 

S. T. Hauser, for subscription for 2, 500 Shares... 
T. A. Marshall, for subscription for 1,000 Shares.. 

H. A. True, for subscription for 2,000 .Shares 

P. H. Kelly, for subscription for 2, 000 Shares 

Sundries Dr. to Stock 

A. V. Head, for 2,500 Shares of Capital Stock 

S. T. Hauser, for 2,500 Shares of Capital Stock... 
T. A. Marshall, for 1,000 Shares of Capital Stock 

H. A. True, for 2,000 Shares of Capital Stock 

P. H. Kelly, for 2,000 Shares of Capital Stock 



250, 000 


00 


250, 000 


00 


100, 000 


00 


200, 000 


00 


200, 000 


00 


125,000 


00 


125,000 


00 


50, 000 


00 


100, 000 


00 


100, 000 


00 



1,000,000 00 



500, 000 00 



The entry on the Stock Cash Book would be : 



Dr. 



Cash. 



Cash. 



Cr. 



1890 
Jan. 



To A. V. Head, for sub- 
scription to Stock 

To S. T. Hauser, for sub- 
scription to Stock 

To T. A. Marshall, for 
subscription to Stock... 

To H. A. True, for sub- 
scription to Stock 

To P. H. Kelly, for sub- 
scription to Stock 







Jan. 


2 


125,000 


00 






125, 000 


00 






50, 000 


00 






100,000 


00 






100,000 


00 






500, 000 


00 



By The Maverick Land 
and Cattle Company for 
amounts received for 
subscriptions to the Cap- 
ital Stock 



TRANSFERRING STOCK. 

When a stockholder sells or disposes of his stock, or any portion 
thereof, it is necessary that a record of such transfer should be made 
on the books of the company. If the whole amount held by the 
party making the transfer is to be transferred, it may be done by 
an indorsement on the original certificate, or by issuing a new one. 
In case only a portion was transferred, it would be necessary to issue 
a new certificate to each one for the number of shares held by each. 

B. K. Marshall wishes to transfer loo shares of stock in the 
St. Paul Investment Company to H. P. Upham. The entry on the 
Stock Journal would be : 



H. P. Upham, 

Dr. To B. K. Marshall, 
For 100 shares of stock transferred. 



10,000.00 



10,000.00 



98 



THE EXPERTS ASSISTANT. 



A certificate should be issued to H. P. Upham for the lOO shares, 
and a new one to B. K. Marshall for 150, the balance held by him; 
the old certificate being taken up and canceled. 

DIVIDENDS. 

When a dividend is declared by the board of directors from the 
accrued profits or other sources, a dividend account should be opened 
on the General Ledger, and credited with the amount of such divi- 
dend, debiting Profit and Loss, or other source of said dividend. 
When payments are made, dividend account should be debited for 
the same. 



TIME TABLES. 

Table showing the Number of Days from any Day of one Month to the same 
Day of any other Month within the Year. 



From any Day of 



January.... 
February ., 

March 

April 

May 

June 

July 

August 

September, 

October 

November. 
December., 



Jan. 



365 
334 
306 
275 
245 
214 
184 
153 
122 
92 
61 



To THE Same Day of 



Feb. 



31 
365 
337 
306 
276 
245 
215 
184 
153 
123 
92 
62 



Mar. 



59 
28 
365 
334 
304 
273 
243 
212 
i8i 
151 
120 
90 



April. 



90 
59 
31 
365 
335 
304 
274 
243 
212 
182 
151 
121 



May. 



120 
89 
61 
30 
365 
334 
304 
273 
242 
212 
181 
151 



June. 



151 
120 
92 
61 
31 
365 
335 
304 
273 
243 
212 
182 



July. 



181 
150 
122 

91 
61 

30 

365 
334 
303 
273 
242 



Aug. 



212 
181 
153 
122 
92 
61 
31 
365 
334 
304 
273 
243 



Sept. 



243 

212 

184 

153 

122 

92 

62 

31 

365 

335 

304 

274 



Oct. 



273 
242 
214 
183 
153 
122 
92 
61 
30 
365 
334 
304 



Nov. 



304 
273 
245 
214 
184 
153 
123 
92 
61 
31 
365 
335 



Dec. 



334 
303 
275 
244 
214 
183 
153 
122 

91 

61 

30 

365 



Example. How many days from May 15, 1888, to March 23, 
1889? Find May in the vertical column on the left, and March 
over the top. At the intersection of these two lines we find 304, 
which is the number of days from May 15, 1 888, to March 15, 1889; 
to March 23 will be 8 more days = 3 1 2, the number of days re- 
quired. One more day than is given in the above table must be al- 
lowed for intervals embracing the end of February falling in a leap 
year. 



THE EXPERTS ASSISTANT. 



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lOO THE EXPERTS ASSISTANT. 



The foregoing table will be found useful in ascertaining the date on 
which a note or account falls due, when the time is expressed in 
days. 

Example. On what date will a note at 90 days, given March 
24th, be due ? By referring to the table, under March 24th we find 
83; adding the time of the note, 834-90=173; referring to the 
table, we find that the 173d day is June 22d ; therefore, the note will 
be due June 22d, or 25th, allowing three days grace. 

When the time runs from one year into another the date can be 
found by subtracting the number of days remaining in the first year 
from the given time, and under the date of the remainder will be 
found the required date. 

Example. On what date will a note given Nov. 15, 1889, at 90 
days, fall due ? We find from the table that there are 46 days still 
remaining in that year ; 90 — 46 = 44; under 44 we find February 
13th ; therefore, the note will be due Feb. 13, or 16, 1890. 

In leap years, where the end of the month of February intervenes, 
one day should be deducted from the date shown by the table. 



THE EXPERTS ASSISTANT. 



lOI 



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B.— To ascertain any day of the 
in any year of the present cen- 
tirst look in the table of years for 
ar required, and under the months 
gures which refer to the corre- 
ing figures at the head of the col- 
of days below. For example — To 
what day of the week September 
11 be on in the year 1873. in the 
of years look for 1873, and in a 
el line under September is figure 1, 
directs to column l,in which' it 
e seen that September 2d falls on 
ay. 

3 table will give the day of the 
on which a person was born. 


1 1 iitit 1 1 


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I02 THE EXPERTS ASSISTANT. 

To ascertain on what day of the week any given date falls in any 
year: To the year (omitting the century) add one-fourth part 
(rejecting fractions, if any), the day of the month desired, and the 
ratio of the month, as shown in the table; divide the product by 7. 
If the remainder is i, the day is Sunday; 2, Monday; 3, Tuesday; 4, 
Wednesday; 5, Thursday; 6, Friday; o, Saturday. 

RATIO OF MONTHS. 

September and December...- r 

April and July 2 

January and October 3 

May 4 

August 5 

February, March and November.. 6 

June o 

In leap years add one less for the ratio of January and February 
in that year. 

Example. 

On what day will July 4 fall in 1891 ? 

91 The year, omitting the century. 

22 One-fourth of 91, rejecting the fraction. 

4 The day of the month desired. 
2 The ratio of July. 

7)119(17-0 remainder = Saturday. 

On what day of the week did August 7th, 1872, fall ? 
72 The year, omitting the century. 
18 One-fourth of 72. 
7 The day of the month desired. 

5 The ratio of August. 

7)102(14-4 remainder. It therefore fell on Wednesday. 



EQUATION OF PAYMENTS. 

Many accountants who are called upon but seldom to average 
an account find themselves at a loss how to proceed, having for- 
gotten the method, and the rules for doing so not being easily 
accessible. The following rules, which are believed to be the 
shortest and most simple in use, have been compiled. By their use 



THE EXPERTS ASSISTANT. IO3 

any account can be easily and readily equated. Equation of pay- 
ments is the process of finding when two or more sums, due at 
different times, may be paid at once without loss to debtor or 
creditor. The time for such payments is called the equated time. 



RULE. 

To equate two or more debits, due at different times, multiply 
each debit by its term of credit and divide the sum of the products 
by the sum of the debits. The quotient will be the equated or 



Example. 

John Smith owes Henry Jones |i,20o ; ^250 due in two months, I300 in three 
months, $350 in four months and I300 in six months, from March 25th. If 
Smith pays the whole sum at one time, how long a credit should he have ? 

250x2= 500 

300x3= 900 
350x4=1400 
300 X 6=1800 



1200 )46oo(3f months =^3 months 25 days 

from March 25th, which we find by the table to be July 20th, as the date on 
which the whole sum should be paid. 



PARTIAL PAYMENTS. 



It often happens that partial payments are made on a debt before 
it falls due. In such case the debtor is entitled to an extension of 
time on the balance. To find the time of such extension to be 
allowed : 



RULE. 



Multiply each payment by the time it was made before fall- 
ing due, and divide the sum of these products by the balance of the 
debt. The result will be the extension to be allowed, beyond the 
original time, on the balance. 



I04 THE EXPERTS ASSISTANT. 

Example. 

Joseph Brown sells B. K. Marshall, Aug. 7, 1889, a bill of goods amounting 
to $1,750, on six months' time. At the expiration of one month he pays |ioo 
on account, at the end of two months $250, at the end of three months I325, 
at four months $400 and at five months $250. At what time after the expira- 
tion of the six months would the balance be due ? I1750.00 at six months from 
Aug. 7, 1889, due Feb. 7, 1890: 

100x5= 500 
250x4=1000 

325x3= 975 
400x2= 800 
250x1= 250 



Balance 425 )3525(8x\ months = 8 months 9 days 

from February 7, which we find by the table to be Oct. 16, 1890, as the date 
on which the balance would be due. 

Where the account consists of bills bought on different dates 
and terms of credit, and it is desired to find at what time the whole 
account would fall due. 

RULE. 

To equate an account when the terms of credit begin at different 
times and on different terms: Find the dates when the several 
amounts become due; from the earliest of these dates as a standard, 
reckon the number of days to each of the others; then find the 
equated time by dividing the sum of the products by the sum of the 
account, as before, and reckon it forward from the standard date. 

Example. 

We find upon our Ledger the following account, which the party desires to 
settle at once. At what date would it be due ? 

March i, I350 at 3 mo., due June i, 350X 0=000000 
April 15, 500 at 4 mo., due Aug. 15, 500 x 75= 375oo 
May 10, 200 at 2 mo., due July 10, 200 x 39= 7800 
June 20, 600 at 6 mo. , due Dec. 20,600x202 = 121200 

1650 1650 ) 166500 

ioo^|f=:ioi days 
from June ist, which on reference to the table we find to be September loth, 
is the date on which a note should be made payable. June ist being the 
earliest date on which any of the amounts fall due, we take it as the standard 
date from which to reckon the time. 



THE EXPERTS ASSISTANT. IO5 

AVERAGING ACCOUNTS. 

It is often desirable to settle or close an account by taking a note 
for the balance, or the debtor may wish to pay it in full, in which 
case it becomes necessary to average the account in order to find 
what the cash balance is, or at what date the note should be made 
payable. Unless the accountant is in constant practice he is very 
liable to forget the method of doing so, especially if the account 
embraces items on both sides on which different terms of credit are 
allowed. Works have been published giving tables in which the 
results can be found, but as few have them at hand, and even then 
it is as easy and quick to work them out as to hunt through the 
tables for the various sums, to say nothing of the liability to error 
in setting down the wrong amounts, it is believed that the following 
rule will enable one to accomplish the desired result in less time 
and with less trouble. 

RULE. 

To average an account which embraces items on both sides hav- 
ing different dates and terms of credit, and to find the cash balance 
or the date on which the balance is due : Take the earliest date on 
either side on which an item falls due as a standard, and multiply 
each item by the number of days intervening between the item 
when it falls due and the standard date ; divide the difference be- 
tween the sum of the debit and that of the credit products by the 
balance of the accounts. The quotient will be the averaged time. 
Reckon this forward from the standard date if the excess of prod- 
ucts is on the same side with the balance of the account; if not, 
backward. 

To find the cash balance, average the account, and if the given 
date of settlement falls before the averaged time, find the present 
worth of the balance of the account for the interval between the date 
of settlement and when due ; if after, add interest for the interval. 

To find the present worth, divide the given sum by the amount of 
$1.00 for the given timie at the given rate. 



io6 



THE EXPERT S ASSISTANT. 



Example. 

The following account with James Williams appears on my Ledger, which 
he desires to settle at this date, July 30th. What is the cash balance, or if a 
note is given for the balance, when should it be made payable, interest being 
reckoned at 7 per cent ? 

James Williams. 



1890 




Jan. 


5 




2S 


Feb. 


3 


Mch. 


IS 


Apl, 


30 



To Mdse. @ 3 mos... 
" Mdse. @. 4 mos... 
" Mdse. @ 2 mos... 
" Mdse. (^ 6 mos... 
" Mdse. @ 3 mos... 









1890 




I 


375 


00 


Jan. 


10 


2 


500 


00 




25 


3 


250 


00 


Feb. 


5 


.S 


680 


00 




IS 


7 


400 


00 


Apl. 


30 



By Mdse. @ 3 mos... 

" Cash 

" Mdse. @ 4 mos.., 
" Mdse. @ 4 mos... 
" Cash 



I 


150 


25 


100 


3 


300 1 


4 


250 j 


113 


400 



Arranging the different sums on each side under the date on which they re- 
spectively fall due, and multiplying each item by the number of days between 
the earliest date, as the standard, and the date on which they severally fall 
due; dividing the balance of the products by the balance of the account, we 
have: 



April 5th 375 x 70= 26,250 

May 25th 500x120^ 60,000 

April 3d 250 X 68^ 17,000 

Sept. 15th 680x233 = 158,440 

July 30th 400x186= 74,400 



2,205 
1,200 



336,090 
123,800 



April loth 150 X 75 = 11,250 

January 25th 100 x 0= o 

June 5th 300X i3i=39j300 

June 15th 250x141=35,250 

April 30th 400X 95 = 38,000 



123,800 



Bal. of acct 1,005 )2i2,29o( = 211 days from January 25th, which we 

find by the table to be August 24th, the date on which the balance of the ac- 
count would fall due, and the date on which, if a note is given, it should be 
made payable. If settled by cash on the day of settlement, we find the pres- 
ent worth of the balance of the account, due in 25 days, to be |i,ooo.20, the 
amount to be paid July 30th. 

It is the practice in many places to deduct simple interest on the 
balance of the account for the unexpired time, instead of finding the 
present worth. By that method the cash balance July 30th would 
be $ 1 ,000. 1 7. 

Another method of arriving at practically the same result — that 
is, to find the cash balance — is to find the interest on each item 
from the date it falls due to the time of settlement. Write it on the 
same side of the account as its item, if the item falls due before the 
date of settlement; if not, on the opposite side. Find the balance 
of interest, and add it to the balance of the account, if the two 
balances are on the same side; if not, subtract it. Taking the 
foregoing account as an example, we have: 



THE EXPERT S ASSISTANT. 



107 



Dr. 



Cr. 



Date. 



April 

May 

April 

September. 
July 



Totals 

Balance of Inter- 
est 



Cash Balance 1,000 



Amount. 



375 
500 
250 
680 
400 



2,205 



2,205 



Days. 



116 
66 
118 



Interest. 



Due 

July 30. 



Date. 

April 

January 

June 

June 

April 

Balance of ac 
count 



Amount. 



150 
100 
300 

250 
400 

I, 200 

1,005 



2,205 



Days. Interest. 



186 
55 
47 
45 
91 



As the balance of the account and interest are on opposite sides, 
we deduct the balance of interest from the balance of the account, 
which leaves ;^ 1,000.13 as the cash balance due July 30th. The 
difference in the results arises from the fractions of days in one 
method, and of cents in the other. If the fraction amounts to one- 
half, or over, of a day, we call it one day; if less, throw it away, 
and the same with the cents in interest. 



FOREIGN EXCHANGE. 

Foreign Bills of Exchange are those that are drawn in one 
country and payable in another. They are usually drawn in sets 
of two or more bills of the same tenor and date, one of which being 
paid, the others are null and void. This is done to prevent delay in 
the payment if one should be lost, they being forwarded by 
different mails. The bills are usually known as Banker's or Ster- 
ling Bills, and Commercial, and are drawn at sight or on time. 
Banker's sight command the highest price, Commercial time the 
lowest. 

The rate of exchange varies from day to day, and is quoted daily 
in the papers of the commercial centres. The quotations are given 
on England in the number of cents that will buy £1 of exchange. 
Thus, if exchange on London is quoted at 4.86 for sterling, $4.86 
will buy £1 of exchange. On France at so many centimes to the 
dollar. A centime is yj-g- of a franc. If exchange is quoted at 
5.12, ;^i,oo will buy 5 francs 12 centimes of exchange. Exchange 
on other countries is quoted at so many cents to some coin taken 
as a standard. 



I08 THE expert's ASSISTANT. 

ARBITRATION OF EXCHANGE. 

It often happens, owing to the demand, or other causes, that 
exchange on any particular country can be purchased cheaper by 
buying through one or more intermediate countries. As, for in- 
stance, owing money in London, you buy a draft on Paris, exchange 
that for one on Hamburg, and that for one on London. The 
question to be determined is whether it would be better to buy in 
that way or direct. It can be ascertained by the following: 

RULE. 

Write the equivalents by pairs, each with its denomination, on 
opposite sides of a vertical line, commencing on the left with the 
denomination of the required sum to be remitted, and arranging the 
terms so that each denomination on the right may correspond with 
the one next below it on the left. If the terms are properly ar- 
ranged the last denomination on the right will correspond with the 
first on the left. Cancel common factors on the left and right, and 
divide the product of the remaining terms on the right by that of 
the remaining terms on the left. 

The following examples will serve to illustrate the rule : 

Example i. 

A merchant owing ;^i,8oo in London, finds that exchange on London is 
4.88; on Paris, 5.15. Exchange on London in Paris is 25 francs 15 centimes to 
the pound sterHng. Is it better for him to remit direct, or by circuitous ex- 
change through Paris, and how much ? 

$ /"1800. Canceling iSco 360 

/i 25.15 Francs. 25.15 

Francs 5. 15 $1. 1.03 5.15 

We have 360 x 25.15^ 1.03 = 18,790.29 as the cost by circuitous exchange- 
By direct, 1,800 x 4.88 =18,784.00. Gain by direct exchange, I6.29. 

Example 2. 

A New York merchant having a balance of /"ijOoo due him in London, or- 
ders it remitted by the following course: To Hamburg, the rate of exchange 
being 20% marks to the pound; thence to Copenhagen, at i)^ marks to the 



THE EXPERTS ASSISTANT. lOQ 

rix-dollar; thence to Bordeaux, at 2 francs 80 centimes to the rix-dollar; 
thence to New York, at 5 francs 30 centimes to the dollar. How many dollars 
did he receive ? Would he have gained or lost by drawing directly on Lon- 
don and selling his draft at 4.87; taking no account of interest ? 



/I 

Marks 2.25 

Rix-dollars i 

Francs 5.30 



^icoo Canceling 

20.75 Marks. 

I Rix-dollar. 9 2,^ 

2.80 Francs. 

$1 1.06 :5^o 



ie©o 200 
2.80 



We have 200 x 2.80 x 83 -^ 1.06 x 9 = 14.872.12 as the amount he would re- 
ceive ; if he had drawn direct, 1000 x 4.87 = 14,870,00. Gain by circuitous ex- 
change, I2.12. 

RULES FOR CALCULATING INTEREST. 

The following rules for calculating interest are based on thirty- 
days to the month, which has become the general usage through- 
out the United States. For the purposes of accountants and others 
having to make frequent calculations, they are considered the short- 
est, simplest and best methods in use, and, in connection with the 
time tables given elsewhere, will enable one to calculate interest 
rapidly, readily and correctly, on any amount for any length of time. 

To find the interest on any sum, at any rate per cent, for any given 
time : Reduce the years to months, adding in the number of months in 
the given time; to this sum annex one-third the number of days; 
multiply the principal by the sum thus obtained, pointing off as many 
places in the product as you have figures in the multiplier and cents 
in the principal. The product will be the interest at 12 per cent. 

To find the interest at any other rate per cent : 

If at 6 per cent, take ^ of this product. 

If at 7 per cent, take -^ of this product. 

If at 8 per cent, take ^ of this product. 

If at 9 per cent, take ^ of this product. 

If at 10 per cent, take f of this product. 

If at II per cent, take ^ of this product. 

If at 15 per cent, add }( to this product. 

If at 18 per cent, add ^ to this product. 

If at 20 per cent, add ^ to this product. 



no THE EXPERTS ASSISTANT. 

SHORT RULE FOR INTEREST. 

To find the interest on any sum for any number of days at any 
rate of interest, multiply the principal by the number of days, and 
divide — 

If at 3 per cent, by 120. 

If at 4 per cent, by 90. 

If at 5 per cent, by 72. 

If at 6 per cent, by 60. 

If at 7 per cent, by 52. 

If at 8 per cent, by 45. 

If at 9 per cent, by 40. 

If at 10 per cent, by 36. 

If at 12 per cent, by 30. • 

If at 15 per cent, by 24. 

If at 18 per cent, by 20. 

If at 20 per cent, by 18. 

The above is based on thirty days to the month, except 7 per 
cent, which is 364 days to the year. 

RAPID ADDITION. 

A very useful, and one might say necessary, qualification for ac- 
countants, railroad and entry clerks, and all others having a large 
amount of footing to do, is the ability to foot rapidly and correctly. 
The following suggestions are offered in the belief that, if faithfully 
followed and persisted in, they will very materially aid in accom- 
plishing that result : 

The process of addition may be likened to learning to read, as 
one is the result of the various combinations of the letters of 
the alphabet, and is learned by practice and memory, by which 
one becomes so expert that they can tell at a glance what any 
combination of letters means, or word they represent, without 
having to spell it out letter by letter. In the same manner anyone 
can acquire the faculty of telling at a glance the sum of as many 
figures as the eye can take in at once. The figures being only 
about one-third as many in number as the letters of the alphabet, it 
is proportionately easier to learn the various combinations; with 



THE EXPERTS ASSISTANT. Ill 

this further advantage in favor of the figures, that while the same 
letters, if differently arranged or combined, will produce widely dif- 
ferent results, the same figures in addition will always produce the 
same result, no matter in what order they are placed; so that hav- 
ing once learned a combination you know its sum in whatever order 
it may be arranged. 

It should be borne in mind that merely committing to memory 
a series of combinations will not make one an expert in rapid addi- 
tion, but that it is a' very essential part of the system that there 
should be constant practice. A portion of each day, no matter how 
small, should be devoted to practice. By so doing the student will 
be surprised at the rapid improvement he is capable of, both in 
speed and correctness. 

In commencing practice with this object in view, a very good plan 
is first to arrange a series of combinations, consisting of say five 
figures, and commit them to memory, so that you will be able to 
give their sum at sight as easily and readily as you would a word 
of five letters. For instance : 



I 


2 


3 


4 


5 


I 


I 


I 


I 


I 


3 


3 


I 


2 


2 


3 


4 


5 


6 


2 


3 


4 


2 


2 


4 


4 


3 


8 


3 


4 


5 


6 


7 


2 


3 


4 


3 


4 


5 


5 


5 


7 


4 


5 


6 


7 


8 


2 


3 


4 


3 


4 


5 


4 


8 


9 


5 


6 


7 


8 


9 


2 


3 


4 


3 


4 


6 


7 


7 


6 



15 20 25 30 35 9 13 17 12 15 23 23 24 32 
Other combinations can be easily formed, which should be gradu- 
ally extended until you can take in and tell at a glance the sum of 
any column of at least ten figures. 

In the same manner it may be extended so as to take in two or 
more columns at a time, very materially increasing the speed. 

SHORT METHODS OF EXTENSION. 

The following rule, original with the author, and never before 
published, will prove of great service to accountants, entry clerks 
and others in making extensions of invoices, figuring percentages, 
etc., where the multiplier consists of two or more of the same figures, 
as 33, 444, etc. By a little practice anyone can become very ex- 
pert in its use, and make the extension in a single line as rapidly as 
he can multiply by a single figure. 



I 



112 THE EXPERTS ASSISTANT. 

RULE. 

Multiply the first or right-hand figure of the sum to be multiplied 
by the first figure of the multiplier; set down the unit of the result 
for the first figure of the product; add the first and second figures 
of the multiplicand together; multiply their sum by the first figure 
of the multiplier, as before, carrying the tens, if any, as in ordinary 
multiplication; set down the unit of the result for the second figure 
of the product; if there should be only two figures in the multiplier 
after you have added the first two together, drop the right-hand 
one and take up the one on the left ; add and multiply them, as be- 
fore. Continue so to do until there is but one left; multiply that, 
setting down the result. You will then have the total in one line. 

If there should be more than two figures in the multiplier, com- 
mencing on the right with the first and then adding the first two 
together, then the first three, and so on, until you have added as 
many figures of the multiplicand together as you have figures in 
the multiplier, then dropping one from the right and taking up 
from the left as long as there is any to take up; continue to drop 
from the right until there is none remaining, multiplying each ad- 
dition and setting down the unit of the result and carrying the tens 
until the final one in which the total is set down. 

The following examples will show the application of the rule: 

Example i. 

I^^Z 3X3= 9 

2>2> 3 + 6= 9 x3= 27 

259479 6 + 8=14x3=42 + 2 = 44 
8 + 7=15x3 = 45 + 4 = 49 

7X3 = 21 + 4 = 25 = 259479- 

Proof. 

7863 
33 

23589 
23589 

259479 



THE EXPERTS ASSISTANT. II3 

Example 2, 

2594 4x4= 16 

444 4 + 9=13x4=52+1= 53 

1151736 4 + 9+5 = 18x4 = 72 + 5 = 77 
9 + 5 + 2 = 16x4 = 64 + 7 = 71 
5 + 2 = 7x4 = 28 + 7 = 35 

2x4= 8 + 3 = 11 = 1151736 

Proof. 

2594 

444 



10376 
10376 
10376 

1151736 



To square any number of figures ending in 5 : Multiply the left- 
hand figure or figures by the left-hand figures of the number to be 
squared, increased by i, and annex 25 to the result. 

Examples. 

75x75 = 7x8=56 annex 25 = 5625 

425 X 425 = 42 X 43 = 1806 annex 25 = 1S0625 

To multiply any number of figures ending in 5 : Taking the 
smaller number as the multiplier, increase the left-hand figure or 
figures of the multiplicand by I, and multiply by the left-hand 
figure or figures of the multiplier, adding 50 for each difference of i 
between the left-hand figures of the multiplier and multiplicand, 
and to that result add 25. 

Examples. 

35x25 = 4x2 = 800 + 50 + 25 = 875 
425x215 = 43x21=90300+1050 + 25 = 91375 

In this method two ciphers are always annexed to the first result. 
By practice one may become very proficient in its use, especially 
where only two figures are involved in each sum, and find it very 



114 THE EXPERTS ASSISTANT. 

useful in making extensions on invoices, etc. To multiply by any 
of the following numbers, annex two ciphers to the sum to be 
multiplied, and 

If by 50, divide by 2. 

If by 33 >^, divide by 3. 

If by 25, divide by 4. 

If by 20, divide by 5. 

If by 16^, divide by 6. 

If by 12^, divide by 8. 

A very convenient and rapid method of making extensions in a 
single line, in figuring percentages in railroad or other work, where 
it is desired to divide an amount into several parts, or amongst the 
different divisions of a railroad, or in making extensions on invoices, 
etc., especially where the percentage or price is expressed by two 
figures, is to use the sum to be divided or extended, if it contains 
more figures than the per cent or price as the multiplier. This 
method only requires practice to make one very expert and rapid 
in its use, saving a great deal of time and labor, and, as experience 
shows, one who practices and uses this method is less liable to 
error than by the old methods. 

The essential part of this method is to multiply by a single figure 
and keep in mind the amount to be carried. It can also be ex- 
tended so as to include three or more figures, the only difference 
being in the larger amounts to be carried from one multiplication 
to another, which anyone will soon be able to do after practice on 
two figures. The following is the rule: 

RULE. 

Multiply the percentage or price by the first figure of the amount 
to be apportioned or extended, setting down the first figure of the 
result ; then multiply the per cent by the second figure, adding to 
the result the amount to be carried from the first result, setting 
down the unit of this result on the left of the one previously ob- 
tained. Proceed in like manner, multiplying the per cent or price 
by each figure of the amount to be extended, and carrying from the 
former result, placing the unit on the left, until the last figure is 
reached, when the whole of that result should be placed on the left, 
giving the total in one line. 



THE EXPERTS ASSISTANT. II5 

The following examples, with the explanations, will serve to make 
the rule more readily understood: 

Example i. 

It is desired to divide or apportion the following amounts amongst the dif- 
ferent divisions of a railroad, according to the percentage to which they are 
entitled: 

Amt. Per Ct. Amt. Per Ct. Amt. Per Ct. Amt. Per Ct. Amt. 
4675 15 7.01 35 16.36 zi 15-43 17 7-95 

15x46.75; multiplying by first figure, 15X5=75 1 set down 5; carry 7; 
15x7=105 + 7 = 112; set down unit on left of first figure=25; carry 11; 
15x6 = 904-11=101; set down unit as before = 125; carry 10; 15x4 = 60 
-[-10=70; setting down total on left = 7.oi25 for first percentage. 35x5 = 
175; set down 5; carry 17; 35x7 = 245 + 17 = 262; set down 2; carry 26; 
35x6 = 210+26=236; set down 6; carry 23; 35 x 4 = 140 + 23=: 163; set 
down total = 16.3625, second percentage. 33x5 = 165; set down 5; carry 16; 
33x7 = 231+16=^247; set down 7; carry 24; 33X 6 ^198+ 24=:222; set 
down 2; carry 22; 33x4 = 132 + 22 = 154; set down total, 15.4275, third per- 
centage. 17x5 = 85; set down 5; carry 8; 17x7=^119 + 8 = 127; set down 
7; carry 12; 17x6 = 102+12=114; set down 4; carry 11; 17x4=^68+11 
= 79; set down total = 7.9475, fourth percentage. 

Percentages. Amounts. 

15 7-or 

35 16.36 

2>l 15-43 

17 7-95 

Totals 100 46.75 

Example 2. 

Amt. Per Ct. Amt. Per Ct. Amt. Per Ct. Amt. Per Ct. Amt. 
384.36. 23 88.40 16 61.50 34 130.68 27 103.78 

Multiplying by first figure of amount, 23x6 = 138; set down 8; carry 13; 
23 X 3=69+ 13 = 82; set down 2; carry 8; 23x4=92 + 8 = 100; set down o; 
carry 10; 23x8 = 184 + 10=194; set down 4; carry 19; 23x3=69 + 19=^88; 
set down total =88.4028, first percentage. 16x6 = 96; set down 6; carry 9; 
16x3^48 + 9=57; set down 7; carry 5; 16x4=64 + 5^69; set down 9; carry 
6; 16x8=128 + 6 = 134; set down 4; carry 13; 16x3=48+13=61; set down 
total ^61.4976, second percentage. 34x6 = 204; set down 4; carry 20; 
34x3=^102 + 20=122; set down 2; carry 12; 34x4=" 136 + 12=148; set down 
8; carry 14; 34x8=272 + 14 = 286; set down 6; carry 28; 34x3 = 102 + 28 = 
130; set down total = 130.6824, third percentage. 27x6=162; set down 2; 
carry 16; 27x3 = 81 + 16 = 97; set down 7; carry 9; 27x4 = 108 + 9 = 117; 
set down 7; carry 11; 27x8=216 + 11=227; set down 7; carry 22; 27x3^ 
81 + 22 = 103; set down total = 103.7772, fourth percentage. 



Il6 THE expert's assistant. 

Percentages. Amounts. 

23 88.40 

16 61.50 

34 130.68 

27 103.78 



Totals 100 ' 384.36 

A very good plan in practicing the above method, until one has 
become expert enough to do it readily, is to set the amounts to be 
carried down on a slip of paper, but rely on it as little as possible. 

BUSINESS LAW. 

It is a fraud to conceal a fraud. 

Ignorance of the law excuses no one. 

The acts of one partner bind all the rest. 

A note or contract made with a minor is voidable. 

A note or contract made with a lunatic is void. 

An agreement without consideration cannot be enforced. 

Principals are responsible for the acts of their agents. 

Checks or drafts must be presented for payment within a reason- 
able time. 

Signatures made with a lead pencil are good in law. 

A note made on Sunday is void, and contracts made on Sunday 
cannot be enforced. 

A note obtained by fraud, or from a person in a state of intoxica- 
tion, cannot be collected. 

It is not legally necessary to say on a note " for value received." 

Notes bear interest only when so stated. 

A note lost or stolen does not release the maker ; he must pay it, 
•if the consideration for which it was given and the amount can be 
proven. 

An indorser has the right of action against all whose names were 
on the bill when he received it. 

An indorser may prevent his own liability to be sued by writing 
"without recourse," or similar words. 

If the letter containing a protest of non-payment be put into the 
post office, any miscarriage does not affect the party giving notice. 

Part payment of a deot which has passed time of statutory limi- 
tation revives the whole debt. 



THE EXPERTS ASSISTANT. 11/ 

Each individual in a partnership is responsible for the whole 
amount of the debts of the firm, except in cases of special partner- 
ship. 

The law compels no one to do impossibilities. 

A receipt for money paid is not legally conclusive. 

An oral agreement must be proved by evidence. 

A written agreement proves itself. 

The law prefers written to oral evidence, because of its precision. 



